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  ANNEX  5: SOUTH  AFRICAWT/TPR/S/ 447 • South Africa  
 
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  CONTENTS  
1   ECONOMIC ENVIRONMENT  ................................ ................................ ......................  281  
1.1   Main features of the economy  ................................ ................................ ....................  281 
1.2   Recent economic developments  ................................ ................................ ..................  282 
1.3   Trade performance and foreign direct investment  ................................ .........................  286 
1.3.1    Merchandise trade  ................................ ................................ ................................ . 286 
1.3.2    Trade in services  ................................ ................................ ................................ ... 288 
1.3.3    Foreign direct investment  ................................ ................................ .......................  289 
2   TRADE AND INVESTMENT REGIMES ................................ ................................ .........  291  
2.1   General framework  ................................ ................................ ................................ ... 291 
2.2   Trade policy formulation and objectives  ................................ ................................ ....... 291 
2.3   Trade agreements and arrangements  ................................ ................................ ..........  293 
2.3.1    Participation i n the WTO  ................................ ................................ .........................  293 
2.3.2    Regional and preferential agreements  ................................ ................................ ...... 293 
2.3.3    Other agreements and arrangements  ................................ ................................ ....... 293 
2.4   Foreign investment regime  ................................ ................................ ........................  294 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ......................  296  
3.1   Measures directly affecting imports  ................................ ................................ .............  296 
3.1.1    Customs procedures and requirements  ................................ ................................ ..... 296 
3.1.2    Import prohibitions, restrictions, and licensing  ................................ ..........................  298 
3.2   Measures directly affecting exports  ................................ ................................ .............  300 
3.2.1    Export procedures and requirements  ................................ ................................ ........  300 
3.2.2    Export taxes,  charges, and levies  ................................ ................................ .............  300 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ...........................  300 
3.2.4    Export subsidies, finance, and assistance  ................................ ................................ .. 301 
3.3   Measures affecting production and trade  ................................ ................................ ..... 304 
3.3.1    Incentives  ................................ ................................ ................................ .............  304 
3.3.2    Standards and other technical requirements  ................................ .............................  305 
3.3.2.1    Standards  ................................ ................................ ................................ ..........  305 
3.3.2.2    Technical regulations  ................................ ................................ ...........................  306 
3.3.2.3    Marking, labelling, and packaging  ................................ ................................ .........  306 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ .. 307 
3.3.4    Competition policy and price controls  ................................ ................................ ....... 309 
3.3.4.1    Competition policy  ................................ ................................ ..............................  309 
3.3.4.2    Price controls ................................ ................................ ................................ ...... 311 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ...........  311 
3.3.6    Government procurem ent ................................ ................................ .......................  313 
3.3.7    Intellectual property rights  ................................ ................................ ......................  313 
3.3.7.1    Overview  ................................ ................................ ................................ ...........  313 
3.3.7.2    International context  ................................ ................................ ...........................  315 WT/TPR/S/ 447 • South Africa  
 
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  3.3.7.3    Domestic IP system ................................ ................................ .............................  315 
3.3.7.3.1    Copyright and related rights  ................................ ................................ ..............  315 
3.3.7.3.2    Trademarks  ................................ ................................ ................................ ..... 316 
3.3.7.3.3    Geographical indications  ................................ ................................ ...................  316 
3.3.7.3.4    Industrial designs  ................................ ................................ .............................  317 
3.3.7.3.5    Patents  ................................ ................................ ................................ ...........  317 
3.3.7.3.6    Plant varieties and genetic resources  ................................ ................................ .. 318 
3.3.7.4    Enforcement of intellectual property rights  ................................ .............................  318 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ...................  320  
4.1   Agriculture, forestry, and fisheries  ................................ ................................ ..............  320 
4.1.1    Agriculture  ................................ ................................ ................................ ............  320 
4.1.1.1    Overview  ................................ ................................ ................................ ...........  320 
4.1.1.2    Institutional, legislative, and policy framework  ................................ .......................  321 
4.1.2    Forestry  ................................ ................................ ................................ ................  324 
4.1.3    Fisheries  ................................ ................................ ................................ ...............  324 
4.2   Mining and energy  ................................ ................................ ................................ .... 326 
4.2.1    Mining  ................................ ................................ ................................ ..................  326 
4.2.2    Energy  ................................ ................................ ................................ .................  328 
4.2.3    Electricity  ................................ ................................ ................................ .............  328 
4.2.4    Petroleum and gas  ................................ ................................ ................................ . 329 
4.3   Manufacturing  ................................ ................................ ................................ ..........  330 
4.4   Services  ................................ ................................ ................................ ..................  332 
4.4.1    Financial s ervices  ................................ ................................ ................................ ... 332 
4.4.1.1    Banking and other credit institutions  ................................ ................................ ..... 333 
4.4.1.2    Insurance  ................................ ................................ ................................ ..........  335 
4.4.2    Telecommunications services  ................................ ................................ ..................  336 
4.4.3    Transport  ................................ ................................ ................................ ..............  338 
4.4.3.1    Air transport  ................................ ................................ ................................ ....... 339 
4.4.3.2    Maritime services  ................................ ................................ ................................  340 
4.4.3.3    Rail transport  ................................ ................................ ................................ ..... 340 
4.4.4    Tourism  ................................ ................................ ................................ ................  341 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 343  
CHARTS  
 
Chart  1.1 GDP growth and contributions, 2014 -22 ................................ ...............................  283 
Chart  1.2 Balance of payments – current account, 2014 -22 ................................ ..................  285 
Chart  1.3 Product composition of merchandise trade by main HS section, 2014 and 2022  .........  287 
Chart  1.4 Direction of merchandise trade, 2014 and 2022  ................................ .....................  288 
Chart  1.5 Trade in services, 2014 -22 ................................ ................................ ..................  289 
Chart  1.6 FDI stock by sector, 2014 and 2021  ................................ ................................ ..... 290 
Chart  1.7 FDI stock by source of investment, and destination of investment ............................  290 WT/TPR/S/ 447 • South Africa  
 
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  Chart  3.1 Charges for the use of intellectual property rights, 2014 -21 ................................ .... 314 
Chart  4.1 M ain traded agricultural products, 2014 -22 ................................ ...........................  321 
Chart  4.2 Total energy supply   by source, 2000 -20 ................................ ..............................  328 
Chart  4.3 Impact of COVID -19 on air transport, 2019 and 2020  ................................ .............  339 
 
TABLES  
 
Table  1.1 Selected macroeconomic indicators – GDP structure , 2014 -22 ................................ . 282 
Table  1.2 National government finances, 2014 -22 ................................ ................................  283 
Table  1.3 Money and interest rates, external sector, and balance of payments, 2014 -22 ...........  284 
Table  1.4 FDI flow and stocks, 2014 -22 ................................ ................................ ..............  289 
Table  3.1 Goods subject to import control measures under ITAC regulations, 2023  ..................  299 
Table  3.2 MRAs with recognized regional cooperation bodies  ................................ .................  305 
Table  3.3 State -owned enterprises  ................................ ................................ .....................  311 
Table 3.4 Applications for trademarks and trademarks registered, 2014 -21 .............................  316 
Table  3.5 Industrial design applications and registrations, 2014 -21 ................................ ........  317 
Table  3.6 Applications for patents and patents registered, 2014 -21 ................................ ........  317 
Table  4.1 South  Africa's trade balance in agricultural products, 2014 -22 ................................ . 321 
Table  4.2 Manufacturing incentive schemes, 2022  ................................ ................................  331 
Table  4.3 Legal instruments and amendments to legislation on financial services  .....................  332 
Table  4.4 SOEs and government agencies, telecommunications sector  ................................ .... 336 
 
 
APPENDIX TABLES  
 
Table  A1.1 Merchandise exports by HS section/chapter/subheading, 2014 -22..........................  343 
Table  A1.2 Merchandise exports by destination, 2014 -22 ................................ ......................  345 
Table  A1.3 Merchandise imports by HS section/chapter/subheading, 2014 -22 .........................  346 
Table  A1.4 Merchandise imports by origin, 2014 -22 ................................ .............................  347 
Table  A2.1 Selected  notifications, 2014 -31 July 2023  ................................ ...........................  348 
Table  A3.1 WTO tariff quotas, 2020 ................................ ................................ ....................  350 
Table  A3.2 Selected incentive schemes administered by the DTIC, 2023  ................................ . 352 
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main features of the economy  
1.1.  South  Africa  is one of the largest economies in Africa . It is a member of the Southern African 
Customs Union , accounting for over 90% of  SACU's combined  GDP. With a per  capita GDP of about 
USD 6,700 in 2022 (Table  1.1), South  Africa  is classified as an upper -middle -income country.  It has 
a relatively diversified economy dominated by the services sector (about 70% of GDP) . Financial 
services accounted for almost a quarter of gross value added  (Table  1.1). It s sophisticated financial 
system, flexible exchange rate regime1, and relatively large industria l base  are sources of strength  
for economic development . Based on the World Economic Forum 's (WEF) Global Competitiveness 
Index, in  2019, South  Africa  was the second most competitive country in Africa, and the 60th out of 
141 economies globally.2 Accordin g to the same index, i t ranked high in the finance system (18th) 
and market size (35th) categories . 
1.2.  With a Gini coefficient of consumption (or income) per  capita of 0.67 in 2018, South Africa is 
ranked by the World Bank as the "most unequal" among 164 countries in the world .3 The top 10%  
of the population hold 80.6% of financial assets .4 In 2015  (the y ear with the most recent data) , 
close to half of its population was in chronic poverty (poor and highly unlikely to escape poverty) .5 
This could undermine inclusive growth.6 The u nemployment rate rose from 25% in 2014 to 33% in 
2022, while the unemployment rate of youth (18 - to 24-year-olds) reached over 60 % (63.9% in the 
first quarter of 2022) .7 
1.3.  The economy is facing mounting challenges, including a n undermaintained  infrastructur e8, 
governance issues, and high exposure to underperforming SOEs and to the consequent risk o f debt 
sustainability .9 Load-shedding in electricity generation , related to the underperformance of ESKOM  
(a wholly state-owned enterprise  and the country's main power generator)  and to the lack of 
maintenance of power  generation facilities,  is causing serious concerns for producers and investors  
(Section 4.2.2) . Consequently , South  Africa 's productivity is comparatively low and declining.10 
1.4.  Climate change is another challenge faced by South  Africa . Reflecting the country's high energy 
intensity , CO2 emissions per unit of GDP  are high .11 South  Africa  relies on c oal for electricity 
generation  (Chart 4.2) . The Government introduced a carbon tax  in 2019 at ZAR  120 (EUR  6.5) per 
 
1 IMF (2023), South  Africa : Staff Concluding Statement of the 2023 Article  IV Mission , 23 March.  
2 World Economic Forum (2020), The Global Competitiveness Report 2019. Viewed  at: 
https://www3.weforum.org/docs/WEF_TheGlobalCompetitivenes sReport2019.pdf .  
3 World Bank (2022), Inequality in Southern Africa: An Assessment of the Southern African Customs 
Union. Viewed  at: 
https://documents1.worldbank.org/curated/en/099125303072236903/pdf/P1649270c02a1f06b0a3ae02e57ead
d7a82.pdf . 
4 World Bank (2022), Inequality in Southern Africa: An Assessment of the Southern African Customs 
Union.  
5 World Bank (2018), Overcoming Poverty and Inequality in South  Africa : An Assessment of Drivers, 
Constraints, and Opportunities . Viewed  at: 
https://openknowledge.worldbank.org/server/api/core/bitstreams/52926444 -c451-55e1-af2e-
2a6d989c348f/content .  
6 OECD (2022), OECD Economic Surveys: South  Africa  2022. Viewed  at: 
https://doi.org/10.1787/d6a7301d -en. 
7 OECD (2022) , OECD Economic Surveys: South  Africa  2022. 
8 For example, maintenance of roads is not conducted as regularly as needed . OECD (2022) , 
OECD  Economic Surveys: South  Africa  2022.  
9 In 2021, support to SOEs in terms of state guarantees amounted to around 16% of GDP. According to 
the OECD, "[t]he widespread underperformance of SOEs is due to mismanagement, corruption, ov erstaffing , 
and an uncontrolled wage bill. The market discipline faced by SOEs is low ". OECD (2022) , OECD Economic 
Surveys: South  Africa  2022, p. 12. 
10 OECD (2022) , OECD Economic Surveys: South  Africa  2022. 
11 According to the OECD report, in 2018 , the CO 2 emissions per unit of GDP in South  Africa  were higher 
than in Brazil, China, India, and Indonesia . OECD (2022 ), OECD Economic Surveys: South  Africa  2022.  WT/TPR/S/ 447 • South Africa  
 
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  tonne of CO2 equivalent emission .12 However, the carbon tax rate is  considered  relatively low by the 
OECD, which also suggested to increase carbon pricing progressively and reduce exemptions.13 
Table  1.1 Selected macroeconomic indicators – GDP structure, 2014 -22 
  2014  2015  2016  2017  2018  2019  2020  2021  2022  
GDP (current 
ZAR billion)  4,133.9  4,420.8  4,759.6  5,078.2  5,363.2 5,625.2 5,568.0 6,208.6  6,628.6 
GDP (current 
USD billion)  380.9  346.5  323.6  381.1  405.3 389.3 338.3 420.1 405.3 
Real GDP growth 
(annual %)  1.4 1.3 0.7 1.2 1.6 0.3 -6.0 4.7 1.9 
GDP per capita (USD)  7,053.6  6,304.7  5,787.4  6,743.2  7,020.5 6,624.1 5,673.2 6,985.3 6,687.1 
Population (million)  54.0 55.0 55.9 56.5 57.7 58.8 59.6 60.1 60.6 
Unemployment rate (%)  25.1 25.4 26.7 27.5 27.1 28.7 29.2 34.3 33.5 
Gross value added by economic activity (% of GVA at current basic prices)  
Agriculture, forestry and 
fishing  2.4 2.5 2.7 2.8 2.5 2.2 2.9 2.8 3.2 
Mining and quarrying  6.4 5.7 5.9 5.8 6.0 6.2 7.0 8.5 8.1 
Manufacturing  13.8 13.9 13.9 13.8 13.8 13.8 13.0 13.2 13.7 
Electricity, gas and 
water  2.8 2.9 2.9 3.0 3.0 3.0 3.1 3.1 3.2 
Construction  3.9 3.9 3.7 3.5 3.4 3.3 2.7 2.5 2.4 
Services           
Trade, catering and 
accommodation  14.1 14.0 13.9 13.8 13.9 13.9 13.1 13.5 13.6 
Transport, storage and 
communication  9.0 9.0 8.8 8.7 8.4 8.3 7.4 7.2 7.6 
Finance, real estate and 
business services  23.0 23.2 23.1 23.3 23.6 23.8 24.3 23.5 23.3 
General government 
services  8.5 8.7 8.8 8.7 8.9 8.9 9.3 8.7 8.6 
Personal services  16.1 16.4 16.4 16.7 16.6 16.7 17.3 17.0 16.3 
Gross value added by economic activity (% annual growth at constant 2015 prices)  
Agriculture, forestry and 
fishing  10.9 -3.6 -5.2 19.1 0.5 -6.5 17.8 7.4 0.9 
Mining and quarrying  -1.5 4.8 -3.4 2.4 -0.8 -0.7 -12.3 12.0 -7.1 
Manufacturing  -0.6 -0.2 0.4 -0.2 1.5 -0.7 -11.7 6.7 -0.4 
Electricity, gas and 
water  -1.2 -4.6 -3.6 0.3 0.9 -3.3 -5.8 1.9 -2.5 
Construction  1.4 1.0 1.4 -5.7 -1.5 -3.4 -17.8 -2.0 -3.4 
Services           
Trade, catering and 
accommodation  1.0 1.1 1.6 -1.3 1.0 -0.4 -12.0 6.2 3.5 
Transport, storage and 
communication  2.6 2.4 1.5 1.0 2.9 -0.6 -15.3 5.0 8.3 
Finance, real estate and 
business services  2.3 1.7 1.8 2.5 3.5 2.2 0.9 2.5 3.4 
General government 
services  3.1 2.5 1.9 1.4 1.9 1.3 1.1 0.0 0.1 
Personal services  1.7 0.9 1.2 1.3 0.6 1.3 -1.7 5.3 2.6 
Source:  Statistics  South Africa , Statistical Publications. Viewed  at: https://www.statssa.gov.za/ . 
1.2  Recent economic developments  
1.5.  Before the COVID -19 pandemic , South  Africa 's economic performance was already weak.  Its 
GDP per capita in 2019 was lower than in 20 14, and over the period 20 14-19, GDP growth averaged 
close to  1.1%  (Table  1.1). The pandemic led t he economy  to contract in 2020  when  GDP fell by  6%; 
in the same year, t he job market situation worsened  and unemployment went up , while SOEs' 
performance deteriorated  with increas ed pressure on public finance s. 
1.6.  In 2021, the economy  recovered  by 4.7%. Export growth and an increase in household 
consumption  and investment  were behind this recovery  (Chart  1.1). Exports were driven by a strong 
global demand and favourable commodity prices. Increase d household consumption and investment  
 
12 The carbon tax is implemented in two phases: a firs t phase from 1  June 2019 to 31  December  2022 
and a second phase from 2023 to 2030. The carbon tax rate increase d annually by inflation plus 2% until 
2022, and annually by inflation thereafter. OECD (2022) , OECD Economic Surveys: South  Africa  2022. 
13 In FY2021/22, businesses were granted a delay for the payment of the carbon tax as part of the 
pandemic response measures. In addition , many  industry -specific tax -free emissions allowances  lowered the 
average carbon tax rate (ranging from ZAR  6 to ZAR  48) per tonne of CO2 equivalent emissions , making 
South  Africa' s carbon price low by international comparison . OECD (2022) , OECD Economic Surveys: 
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  might have resulted  from the reopening of the economy , higher government support to individuals 
and businesses , and facilitated access to credit.  
Chart  1.1 GDP growth and contributions, 2014 -22 
(Percentage points)  
 
Source:  Statistics South  Africa , P0441 – Gross Domestic Product (GDP), 1st Quarter 202 3. Viewed  at: 
https://www.statssa.gov.za . 
1.7.  To address the negative impact of the pandemic, t he Government  mobilized  ZAR 500 billion  
(close to 10% of year 2020 GDP), 40% of which was  indirect support for loan guarantees for 
enterprises.14 The rest included  ZAR 63 billion  as the COVID -19 Temporary Employer -Employee 
Relief Scheme , was distributed through  relief to employers to preserv e jobs. This scheme  was 
complemented by grants and/or tax relief to businesses . As a result,  the government debt to GDP 
ratio rose between  2020 and 2022 (Table  1.2), leaving limited fiscal space to respond to other 
adverse shocks (e.g. SOEs contingent liabilities, social spending needs, and climate events ). 
Table  1.2 National government finance s, 2014 -22 
(% of GDP)   
2014  2015  2016  2017  2018  2019  2020  2021  2022  
Total revenue  22.5 23.4 23.5 23.1 23.6 23.5 22.4 24.3 24.9 
Tax revenue, of which:  22.0 22.4 22.8 22.5 23.0 22.8 21.4 23.5 24.2 
Taxes on income, profits and capital 
gains  13.2 13.4 13.5 13.8 13.8 13.7 12.9 14.3 14.6 
Taxes on goods and services  8.4 8.4 8.5 8.2 8.5 8.4 8.3 8.5 8.6 
Value added tax  6.2 6.1 6.2 5.8 6.1 5.9 6.0 6.0 6.2 
Excise duties, of which:  2.0 2.1 2.1 2.1 2.3 2.3 2.1 2.3 2.1 
Fuel levya 1.1 1.2 1.3 1.4 1.4 1.4 1.4 1.4 1.2 
Otherb 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Taxes on international trade and 
transactions, of which:  1.0 1.0 1.0 0.9 1.0 1.0 0.8 0.9 1.1 
Import dutiesc 1.0 1.0 1.0 0.9 1.0 1.0 0.8 0.9 1.1 
Less: SACU payments  1.2 1.2 0.9 1.0 0.9 0.9 1.1 0.8 0.7 
Non-tax revenued 0.5 1.1 0.7 0.6 0.6 0.6 1.0 0.8 0.6 
Total expenditure  26.8 27.3 27.3 27.2 27.1 29.1 31.9 29.7 29.2 
Cash book balance before borrowing  -4.3 -3.9 -3.8 -4.1 -3.5 -5.6 -9.5 -5.5 -4.4 
 
14 OECD (2022) , OECD Economic Surveys: South  Africa  2022. 
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2014  2015  2016  2017  2018  2019  2020  2021  2022  
National government debt at face value 
(end of period)           
Total 43.3 45.2 47.1 48.6 51.5 56.1 68.9 68.8 71.1 
Domestic  39.3 40.4 42.5 44.1 46.1 50.3 61.8 61.7 63.2 
Foreign  3.9 4.8 4.6 4.4 5.4 5.8 7.0 7.1 7.9 
a From April  2014, levies on imported fuel have been moved to fuel levy. From June  2019, carbon fuel 
levy has been added to the fuel levy.  
b Including levy on financial services and taxes on the use of goods and permission to use goods or to 
perform activities.  
c As from Ap ril 2012, import duties include customs duties and specific excise duties on imports.  
d Including departmental revenue and other miscellaneous revenue but exclud ing premiums on debt 
portfolio restructuring and loan transactions.  
Source:  South  Africa n Reserve Bank, Full Quarterly Bulletin – No 308 – June 2023. Viewed  at: 
https://www.resbank.co.za/ . 
1.8.  The South  Africa n Reserve Bank (SARB), the Central Bank, reacted by implementing an 
expansionary monetary policy to limit the impact of the pandemic on the economy. In fact, b etween 
March and July  2020, the SARB gradually reduced the repurchasing rate from 6.25% to 3.50% and  
maintained it at that level up t o November  2021. It also increased its interventions in the money 
market to provide more liquidity to financial institutions.15 As a consequence , inflation rose to 6.9% 
in 2022 (Table  1.3), which is above SARB's target  of 3%-6% per year. The rise in inflat ion from late 
2021 has led to a tightening of monetary policy again ; price stability being the main objective of the 
policy . 
1.9.  South  Africa has a floating exchange rate regime with rare interventions by the SARB in the 
foreign exchange market.16 From the beginning of  2022,  both the food and energy prices  and the 
depreciation of  the rand (the national currency)  put upward pressure on inflation. According to the 
SARB, t he exchange rate is one of the key drivers of inflation in South  Africa  and its impac t is mainly  
transmitted through import prices.17 South  Africa 's international reserves were equivalent to about 
five months of imports of goods and services in 202 2 (Table  1.3). 
Table  1.3 Money and interest rates, external sector, and balance of payments, 2014 -22 
  2014  2015  2016  2017  2018  2019  2020  2021  2022  
Money and interest rate  
Broad money (annual %  
change ) 7.2 10.5 6.1 6.4 5.6 6.2 9.4 5.7 8.6 
Repo rate (end of 
period)  5.8 6.3 7.0 6.8 6.8 6.5 3.5 3.8 7.0 
Treasury bills – 91-day 
(end of period)  6.1 6.9 7.6 7.5 7.6 7.2 3.9 3.9 6.5 
Prime lending rate (end 
of period)  9.3 9.8 10.5 10.3 10.3 10.0 7.0 7.3 10.5 
CPI (annual % change)  6.1 4.6 6.4 5.3 4.7 4.1 3.3 4.5 6.9 
External sector  
ZAR per USD  (period 
average)  10.9 12.8 14.7 13.3 13.2 14.4 16.5 14.8 16.4 
Nominal effective 
exchange rate 
(percentage change)a -10.3 -5.5 -10.8 9.7 -1.0 -5.1 -11.3 7.5 -2.7 
Real effective exchange 
rate (percentage 
change )a -3.3 1.2 -3.7 10.5 2.5 -0.2 -8.3 6.1 1.9 
Current account/GDP  -4.8 -4.3 -2.7 -2.4 -2.9 -2.6 1.9 3.7 -0.5 
Trade/GDP  59.5 56.7 55.9 53.5 54.5 53.9 50.7 56.1 65.1 
Exports of goods and 
services (% of GDP at 
current prices)  29.0 27.7 28.2 27.3 27.5 27.2 27.5 31.1 33.5 
Imports of goods and 
services (% of GDP at 
current prices)  30.5 29.0 27.7 26.2 27.0 26.7 23.2 25.0 31.5 
Total reserves (includes 
gold, USD  billion)  49.1 45.8 47.4 50.7 51.6 55.1 55.0 57.6 60.6 
 
15 OECD (2022) , OECD Economic Surveys : South  Africa  2022.  
16 IMF (2022), 2021 Article  IV Consultation – South  Africa . Viewed  at: 
https://www.imf.org/en/Publications/CR/Issues/2022/02/10/South -Africa -2021-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-513001 .  
17 SARB  (2018) , Annual Report 2017/18 . Viewed  at: https://www.resbank.onlinereport.co.za/2018/ . WT/TPR/S/ 447 • South Africa  
 
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    2014  2015  2016  2017  2018  2019  2020  2021  2022  
In months of imports of 
goods and services 4.4 4.9 5.3 4.9 4.7 5.1 7.2 5.4 4.8 
Balance of payments (USD  million)  
Balance on current 
account  -18,308  -15,035  -8,658  -9,024  -11,870 -10,140  6,576 15,338 -1,834 
Capital transfer account 
(net receipts +)  22 19 16 18 18 17 14 15 -1,769  
Balance on financial 
accountb 22,876  16,408  8,935  8,253  10,988  7,249  -7,839  -17,020 4,094 
Unrecorded transactionsc -4,590  -1,391  -294 753 865 2,874 1,249 1,667 -491 
a Weighted average exchange rate against most important currencies.  The minus sign indicates 
depreciation.  
b A net incurrence of liabilities (inflow of capital) is indicated by a positive (+) sign. A net disposal of 
liabilities (outflow of capital) is indicated by a negative ( -) sign.  
 A net acquisition of assets (outflow of capital) is indicated by a negative ( -) sign. A net disposal of 
assets (inflow of capital) is indicated by a positive (+) sign.  
c Transactions on the current, capital transfer , and financial accounts.  
Source:  South  Africa n Reserve Bank, Full Quarterly Bull etin – No 308 – June 2023. Viewed  at: 
https://www.resbank.co.za/.  
1.10.   Trade (imports and exports of goods and services) accounted for 65% of GDP  in 2022 , up 
from about 60% in 2014  (Table  1.3). South  Africa  has run trade in goods and services surplus es 
since 2016. However, after having been  in deficit over several years, its current account moved to 
surplus as from 20 20 before recording  a deficit in 2022 . The current account deficit is driven mainly 
by the income account and current transfers  (Chart  1.2). 
Chart  1.2 Balance of payments – current account, 2014 -22 
(USD million)  
 
Source:  South  Africa n Reserve Bank, Full Quarterly Bulletin – No 308 – June 2023. Viewed  at: 
https://www.resbank.co.za/ . 
1.11.   Over the review period, the Government eased  licensing requirements for  power generation , 
announced a plan to create a mechanism for private -sector par ticipation in transmission 
infrastructure  (Section 4.2.2) , completed a spectrum auction  (Section 4.4.2) , and took steps to 
improve third -party access to ports and freight networks.18 In the area of public procurement, in 
2022, a Judicial Commission made pr oposals on anti -corruption reform measures (Section  3.3.6).  
1.12.   The reforms are yet to build up the resilience of  the economy  that remains  highly vulnerable  
to external shocks including tighter global financial conditions, volatile commodity prices , and the 
energy crisis, a s well as internal constraints such as limited fiscal space  and infrastructure 
 
18 IMF (2023), South  Africa : Staff Concluding Statement of the 2023 Article  IV Mission , 23 March.  
WT/TPR/S/ 447 • South Africa  
 
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  bottlenecks (e.g. intense power cuts ). According to the SARB forecast,  real GDP would grow  by 0.3% 
in 2023 and  1% in  202419, and the IMF projects it at 0.1% in 2023 .20 
1.3  Trade performance  and foreign direct investment  
1.3.1   Merchandise trade  
1.13.   South  Africa 's merchandise exports became more concentrated in mineral products and 
precious stones and metals, up from 40% in 2014 to  almost half of total merchandise exports in  2022 
(Chart  1.3 and Table  A1.1). The share of agricultural products remain ed more or less the same over 
the review period, while the share of manufactured products dropped.  
1.14.   In 2022, most exports went to the EU -27 (21%), followed by China (9.6% ), the United  States  
(8.8% ), and Japan (7%) (Chart  1.4 and Table  A1.2). South  Africa 's exports to other SACU members 
declined  from 13.1% in 2014 to 9.2% in 2022 , while those  to other African countries declined as 
well, from 13.5% to 10.7% during the same period. Th is declining trend contradicts  the 
Government's ta rget o f reach ing 25% of trade with other SACU members  by 2030 , as indicated in 
South  Africa 's National Development  Plan 2030 .21 
1.15.   From 2014 to 2022, t he top two items imported into South  Africa  remain unchange d: mineral 
products (23.2 % of total merchandise imports ) and machinery  and electrical equipment (20.5%)  
(Chart  1.3 and Table  A1.3). The biggest part of mineral imports was petroleum oils (including oils 
obtained from bituminous minerals other than crude) ; their  share in total merchandise imports went 
up from 5.8% in 2014 to 16.7% in 2022. This  reflect s the inadequate capacity of South  Africa 's 
refineries to meet domestic demand , as well as increase s in energy prices . The share of pulp wood 
(including paper and paperboard) imports in total merchandise imports went up  from 1.4% in 2014 
to 4.1% in 2022 . 
1.16.   South  Africa  imports mainly from the EU-27 (21.8%), followed by China (20.1%), India 
(7.4%) , and the United  States  (7.3%). From 2014 to 2022, imports from  Middle East countries , in 
particular the United  Arab Emirates , increased significantly. I mports from other SACU members 
increased substan tially, in particular imports from Namibia doubled . Imports from other African 
countries fell (Chart  1.4 and Table  A1.4). 
 
19 SARB  (2023), " Statement of the Monetary Policy Committee ", 25 May. Viewed  at: 
https://www.resbank.co.za/content/dam/sarb/publications/statements/m onetary -policy -
statements/2023/may/Statement%20of%20the%20Monetary%20Policy%20Committee%20May%202023%20.
pdf. 
20 IMF (2023), South  Africa : Staff Concluding Statement of the 2023 Article  IV Mission , 23 March.  
21 National Pla nning Commission, National Development Plan 2030 . Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201409/ndp -2030-our-future -make-it-workr.pdf .  WT/TPR/S/ 447 • South Africa  
 
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  Chart  1.3 Product composition of merchandise trade by main HS section, 2014 and 2022  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
WT/TPR/S/ 447 • South Africa  
 
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  Chart  1.4 Direction of merchandise trade, 2014 and 2022  
 
Source: WTO Secretariat calculations, based on UN Comtrade database.  
1.3.2   Trade in services  
1.17.   Exports of services had a nosedive in 2020 when the pandemic started , and recovered slowly 
after. Transportation and travel services have not fully recovered, and their trade values are still 
below the pre -pandemic  level ( Chart  1.5). Exports of telecommunications, computer and information 
services, and other business and miscellaneous services rebounded strongly, while financial services 
recovered as well.  
1.18.   Imports of serv ices are concentrated in transport services ; telecom, computer and information 
services ; travel ; other business  services ; and charges for the use of intellectual property . The import 
value of telecom, and computer and information services has grown strongl y in recent years , perhaps 
on account of the increased reliance on IT technology and products . 
United States 7.0%
EU-2715.5%
United Kingdom
3.8%
SACU 13.1%
Mozambique 3.2%
Other Africa 13.5%United Arab 
Emirates
1.6%China 9.5%Japan 5.3%India 4.1%Other Asia 8.8%Other 14.7%Chart 1.[ZAF]  Direction of merchandise trade, 2014 and 2022
2014 2022
Exports (f.o.b.)
United 
States 8.8%
EU-27
21.0%
United 
Kingdom
5.2%
SACU 9.2%
Mozambique
4.8%Other Africa
10.7%United Arab 
Emirates
2.1%China 9.6%Japan 7.0%India 4.3%Other Asia
8.3%Other 9.1%
Total:  USD 92.6 billion Total:  USD 121.6 billion
United States
6.6%
EU-27
24.6%
SACU 2.4%
Other Africa
10.9%
Saudi Arabia, 
Kingdom of
7.1%United Arab 
Emirates 1.5%Other Middle 
East1.9%China 15.5%Japan 3.8%India 4.6%Thailand 2.4%Other Asia
9.4%Other 9.3%Imports (c.i.f.)
United 
States 7.3%
EU-27
21.8%
SACU 3.3%
Other Africa
5.8%
Saudi Arabia, 
Kingdom of
4.0% United Arab 
Emirates
3.7%Other Middle 
East4.4%China
20.1%Japan 2.5%India 7.4%Thailand
2.7%Other Asia
8.4%Other 8.5%
Total:  USD 99.8 billion Total:  USD 111.9 billion
Source :  WTO Secretariat calculations, based on UN Comtrade database.WT/TPR/S/ 447 • South Africa  
 
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  Chart  1.5 Trade in services, 2014 -22 
(USD billion)  
 
Source:  South  Africa n Reserve Bank, Full Quarterly Bulletin – No 308 – June 2023. Viewed  at: 
https://www.resbank.co.za/ . 
1.3.3   Foreign direct investment  
1.19.   FDI inflow s into South  Africa  spiked in 2021. Although they dropped in 2022, they were still 
higher than the pre -pandemic  level (Table  1.4). FDI flow s abroad registered a negative figure in 
2020.  
Table  1.4 FDI flow and stocks, 2014 -22 
  2014  2015  2016  2017  2018  2019  2020  2021  2022  
FDI (USD  billion)  
FDI flow in South  Africa  5.8 1.7 2.2 2.0 5.4 5.1 3.1 40.2 9.2 
FDI flow abroad  7.7 5.7 4.5 7.4 4.1 3.1 -2.0 0.1 2.2 
FDI stock in South  Africa  138.9  126.8  135.5  156.4  138.6  145.2  133.1  174.8  .. 
FDI stock abroad  146.0  154.7  175.6  273.0  246.4  215.0  251.0  223.8  .. 
.. Not available.  
Source:  South  Africa n Reserve Bank, Full Quarterly Bulletin – No 308 – June 2023. Viewed  at: 
https://www.resbank.co.za/ . 
1.20.   At the sectoral level , manufacturing  replaced financial services to  become the largest recipient 
sector in terms of  FDI stock in 2021, followed by mining and quarrying, and financial services 
(Chart  1.6). FDI mainly originated from the Netherlands, which is also the main destination for 
South  Africa n investment. Other main sources of FDI into South  Africa  are the United  Kingdom , 
Belgium, and the United  States , while other main destinations are t he United  Kingdom , the 
United  States , Mauritius , and Switzerland. South  Africa 's investment in other SACU  members 
accounted for 1.8% of the total, down from  2.2% in 2014.  
-20-15-10-505101520
2014 2015 2016 2017 2018 2019 2020 2021 2022Exports
Imports
Trade balance
-10 -8 -6 -4 -2 0 2 4 6 8 10Transportation
Travel
Financial and insurance services
Charges for the use
of intellectual property
Telecommunications, computer
and information services
Personal, cultural and
recreational services
Other business2014 2022
Imports Exports
(USD billion)(USD billion)Chart 1.5  Trade in services, 2014 -22
Source:  Source: South African Reserve Bank, Full Quarterly Bulletin –No 307 –March 2023. Viewed at: 
https://www.resbank.co.za/en/home/publications/publication -detail -pages/quarterly -bulletins/quarterly -bulletin -
publications/2023/FullQuarterlyBulletinNo307March2023WT/TPR/S/ 447 • South Africa  
 
- 290 - 
 
  Chart  1.6 FDI stock by sector, 2014 and 2021  
(USD billion, % of total)  
 
Source:  South  Africa n Reserve Bank, Full Quarterly Bulletins – No 279 March  2016 and 
No 307 – March  2023. Viewed  at: https://www.resbank.co.za/ . 
Chart  1.7 FDI stock by source of investment, and destination of investment  
(% of total)  
 
Source:  South  Africa n Reserve Bank, Full Quarterly Bulletins – No 279 – March  2016 and 
No 307 – March  2023. Viewed  at: https://www.resbank.co.za/ . 
1.8% , USD 3.14.7% , USD 8.27.1% , USD 12.526.0% , USD 45.429.4% , USD 51.530.9% , USD 54.1
0.4% , USD 0.64.9% , USD 6.810.3% , USD 14.344.4% , USD 61.723.5% , USD 32.616.5% , USD 22.9
 2014  2021Manufacturing
OtherWholesale and retail trade, 
catering and accommodationTransport, storage and 
communicationFinance, insurance, real 
estate and business servicesMining and quarryingChart 1.6 FDI stock by sector
(USD billion, % of total)
Source: Source: South African Reserve Bank, Full Quarterly Bulletins –No 279 March 2016 and No 307 –March 2023. Viewed at: 
https://www.resbank.co.za/ 
WT/TPR/S/ 447 • South Africa  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1  General framework  
2.1.  There were no changes over the review period to the 1996 Constitution of the Republic of 
South  Africa . The provisions of the Constitution that set out the structure and institutions of 
government are described in detail in the Secretaria t Report for  the Southern African Customs 
Union's (SACU's)  TPR in  2003.22 This Report also describes the procedures for enacting legislation 
and the steps required for treaties to be signed and ratified, and to enter into force.23 
2.2.  Several government departments were reconfigured in  2019 to promote coherence, better 
coordination, and improved efficiency. In this regard, the Department of Trade, Industry and 
Competition  (DTIC) was created through a merger of the Department of Trade and Indust ry with 
the Economic Development Department.  
2.2  Trade policy formulation and objectives  
2.3.  The DTIC is the main government agency responsible for trade and investment policies in 
South  Africa .24 Various other government departments and agencies have trade and 
investment -related responsibilities (Sections  3 and 4). Through the government cluster framework, 
which is designed to group government departments with cross -cutting programmes, the DTIC 
participates in the clusters on (i)  economic sectors, investment, empl oyment, and infrastructure 
development; and (ii)  international cooperation, trade, and security.25 
2.4.  The International Trade Administration Commission  (ITAC) continues to administer customs 
tariff investigations , trade remedies , and import and export controls. The Tariff Investigations Unit 
of ITAC oversees investigations to change ordinary customs duties, and on the introduction of rebate 
and drawback provisions. ITAC is also responsible for tariff -related issues in SACU, such a s customs, 
import and export controls, and contingency trade remedies pursuant to the International Trade 
Administration Act.26 
2.5.  Two specific parliamentary committees (the Portfolio Committee on Trade and Industry , and 
the Select Committee on Trade and Indu stry, Economic Development, Small Business Development, 
Tourism, Employment and Labour) oversee South  Africa 's trade policies.  
2.6.  Trade policy continues to be guided by the 2010 Trade Policy and Strategy Framework  (TPSF), 
as revised in 2012, and by the 2021 T rade Policy for Industrial Development and Employment 
Growth.27 The main objectives of the former are to diversify South  Africa 's economic base, as well 
as to seek the manufacture and the export of high value -added products . It recommends a " 'strategic 
tariff policy ' approach" with tariff policy being decided on a sector -by-sector basis.28 The Trade Policy 
for Industrial Development and Employment Growth is focused on supporting South  Africa 's 
industrial development and employment growth. It sees tariffs as  a key instrument of industrial 
policy and emphasizes that the tariff regime needs to be "carefully calibrated to the specificities of 
each sector".29 It indicates that South  Africa  will increase efforts to effectively deploy trade defence 
instruments agai nst unfair and injurious imports and foresees a stronger role for the South  African 
 
22 WTO document WT/TPR/S/114, 24  March  2003, Annex  4. 
23 WTO document WT/TPR/S/34, 6  April 1998, Section  II. 
24 The DTIC's objectives are to  (i) increase the contribution of small, medium , and micro -sized 
enterprises  (SMMEs); (ii) ensure the implementation of Broad -Based Black Economic Empowerment  (B-BBEE); 
(iii) increase the levels of foreign direct investment; (iv) expand market access opportunities for South  Africa n 
goods and services; a nd (v)  contribute towards building skills, technology , and infrastructure platforms in the 
economy.  
25 Government of South  Africa,  Guide to Government:  What Are the Government Clusters . Viewed  at: 
https://www.gov.za/faq/guide -government/what -are-government -clusters -and-which -are-they.  
26 ITAC, International Trade Administration Act . Viewed  at: 
http://www.itac.org.za/upload/International%20Trade%20Administration%20Act.pdf . 
27 DTIC (2021), A Trade Policy for Industrial Development and Employment Growth.  Viewed  at: 
http://www.thedtic.gov.za/wp -content/uploads/SA_ Trade_Policy.pdf . 
28 ITAC (2010),  A South  African Trade Policy and Strategy Framework , p. xiv. Viewed  at: 
http://www.itac.org.za/ upload/Trade%20Policy%20and%20Strategy%20Framework.pdf . For further 
information , see WTO document WT/TPR/S/324/Rev.1, 5  February  2016, Section  2.1. 
29 DTIC (2021), A Trade Policy for Industrial Development and Employment Growth , p. 2. WT/TPR/S/ 447 • South Africa  
 
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  Revenue Service ( SARS ) in eliminating elicit trade and addressing under -invoicing. The Policy 
promotes , for the first time , the implementation of measures to empower women and also stresses 
the importance of regional economic integration and expanded bilateral engagements.  
2.7.  South  Africa  is implementing several other, more recent, development strategies that have 
trade and inves tment -related components, namely the National Development Plan  2030, the 
Re-imagined Industrial Strategy  (RIS) , and the Economic Reconstruction and Recovery Plan.  
2.8.  The National Development Plan  2030, issued in February  2013, sets several long -term 
objective s and actions in which international trade features prominently. The Plan also recognizes 
the importance of expanding and diversifying exports to boost domestic growth and employment, 
noting that prerequisites are more competitive South  Africa n businesses that need to be supported 
by investment and stable macroeconomic policies. With respect to building an inclusive rural 
economy, the Plan calls for a positive trade balance for primary and processed agricultural products. 
It also envisages further regional integration through logistics corridors, connecting supply  chains 
with neighbouring countries, and expansion of trade penetration, including in niche products, in 
fast-growing markets such as those in Africa, East Asia, and Brazil.30 
2.9.  The RIS, adopted in Ju ne 2019, is a five -year broad policy plan focused on how the Government 
can help South  Africa n industries be more dynamic, competitive , and better performing. 
It incorporates and builds on key aspects of other national policy documents adopted by the Cabin et. 
Trade policy is seen as an important instrument for helping achieve certain objectives. For instance, 
the RIS envisages exploring different trade measures to mitigate high levels of imports and to 
develop interventions to support the sugar and poultry sectors. The RIS also aims at realigning 
South  Africa 's trade agenda with the WTO, the African Continental Free Trade Area  (AfCFTA), the 
Tripartite Free Trade Area  (TFTA), the Southern African Development Community  (SADC), and SACU 
(Main Report, Section  2).31 The RIS has a subprogramme on industrial competitiveness , as well as 
customized sector -specific programmes/master plans. Some of these have been formulated by 
the DTIC, namely the Cultural and Creative Industries  (CCI) Masterplan , the Master Plan for the 
Commercial Forestry Sector in South  Africa  2020-2025, the South  Africa n Poultry Sector Master 
Plan, the South  Africa n R-CTFL Value Chain Master Plan to  2030, the Automotive Industry Master 
Plan to 2035 , the Sugar Value Chain Master  Plan 2030, the Steel and Metal Fabrication Master 
Plan 1.0, and the Master Plan for the South  Africa n Furniture Industry (Sections  3 and 4).32 Others 
are being implemented by different government departments, and include master plans on forestry, 
agricult ure, and agro -processing; the digital economy; the oceans economy; tourism; renewable 
energy; and the health economy.  
2.10.   The Economic Reconstruction and Recovery Plan was introduced by the President at the 
Parliament in October  2020 to, inter alia, address th e economic and social consequences of the 
COVID -19 pandemic; achieve a sufficient, secure , and reliable energy supply within two  years; 
create mass employment; increase infrastructure investment; reduce data costs; increase 
localization for reindustrializa tion and growth; and reinvigorate vulnerable sectors such as tourism. 
These broad objectives are to be achieved through, inter alia, the modernization and reform of 
industries and associated state -owned enterprises; re -orientation of trade policies to purs ue greater 
regional integration to boost exports; lowering business entry and operational barriers; and 
promotion of greater beneficiation of raw materials. The Plan also aims to ensure the inclusion of 
South  Africa n manufactured products into major Africa n value and supply  chains, especially after 
the effective implementation of the AfCFTA ( Main Report, Section  2).33 The Economic Reconstruction 
and Recovery Plan targets the substitution of 20% of imported goods (42  product categories) with 
domestically pro duced goods within a five -year period.  
 
30 Government of South  Africa, National Development Plan  2030. Viewed  at: 
https://www.gov.za/issues/national -development -plan-2030 and 
http://www.dac.gov.za/sites/default/files/NDP%202030%20 -%20Our%20future%20 -
%20make%20it%20work_0.pdf . 
31 DTIC. Viewed  at: http://www.thedtic.gov.za/wp -content/uploads/Re -imagining -Industrial -Strategy -
FINAL -13-June-2019.pdf .  
32 DTIC, Master Plans . Viewed  at: http://www.thedtic.gov.za/media -room/master -plans /. 
33 Government of South  Africa, The South  Africa n Economic Reconstruction and Recovery Plan . 
Viewed  at: https://www.gov.za/sites/default/files/gcis_document/202010/south -african -economic -
reconstruction -and-recovery -plan.pdf . WT/TPR/S/ 447 • South Africa  
 
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  2.11.   Since  2014, new or amended trade/trade -related laws were enacted in the areas of 
investment (Section  2.4, customs (Section  3.1.1.) , special economic zones (Section  3.2.4) , sanitary 
and phytosanitary measures (Section  3.3.3) , competition policy (Section  3.3.4.1) , and intellectual 
property rights (Section  3.3.7).  
2.3  Trade agreements and arrangements  
2.3.1   Participation in the WTO  
2.12.   South  Africa  is an original Member of the WTO. It ratif ied the WTO  Agreement on Trade 
Facilitation in 2017 (Section  3.1.1). South  Africa  is not a signatory to the joint statement initiatives 
on investment facilitation for development, electronic commerce, or services domestic regulation. It 
is not a member of the WTO Informal Working Group on MSMEs, nor is it a proponent of the 
Buenos  Aires Declaration on Trade and Women's Economic Empowerment. Regarding the work 
programme to examine all trade -related issues arising from e -commerce, as established by the 
1998 Declaration on Global Electronic Commerce, South  Africa  was the co -proponent of a working 
paper assessing the moratorium on customs duties on electronic transmissions that sought more 
clarity on its scope and development impact.34 South  Africa 's priorities in the WTO are set out in 
detail in the 2021  Trade Policy for Industrial Development and Employment Growth. The Policy states 
that, while South  Africa  supports the principles of the rules -based multilateral trading system, it is 
seeking a rebalancing of WT O agreements, and advocates for an approach to WTO reform based on 
principles of inclusivity and development. It also sees the WTO as having a key role in addressing 
the global public health crisis caused by the COVID -19 pandemic.  
 
2.13.   South  Africa  continues t o defend its trade interests through the WTO's dispute settlement 
mechanism (Main  Report, Section  2). South  Africa  submits tariff and trade data annually to the 
WTO Integrated Database  (IDB). It also continues to make regular notifications to the WTO 
(Table A2.1), though some are outstanding, namely agriculture  (export subsidies , domestic support , 
volume of imports under tariff and quota commitments , use of the agricultural special safeguard 
provisions , notification under the decision on possible negative effects of the reform programme on 
Least Developed Countries and Net Food -Importing Developing Countries  (LDC-NFIDC) ), replies to 
questionnaires on import licensing procedures , quantitative restrictions ,, subsidies , and state trading 
enterprises. In addition, it has yet to notify the Protection, Promotion, Development and 
Management of Indigenous Knowledge Act (Section  3.3.7). 
2.3.2   Regional and preferential agreements  
2.14.   South  Africa  has signed some RTAs through SACU and the SADC. It has ratified the AfCFTA. 
Products originating from South  Africa  are eligible for non -reciprocal preferences under the 
GSP schemes of some developed and developing countries. In addition, South  Africa  is also eligible 
for unilateral preferences under the United  States ' African Growth and Opportunity Act  (AGOA) 
(Main  Report, Section  2). 
2.15.   South  Africa  also maintains a separate trade preference agreement with the European  Union  
under the Trade, Development and Cooperation Agreement  (TDCA), but the trade component of it 
has been replaced by provisions under the SADC -EU Economic Partnership Agreement  (EPA) 
(Main  Report, Section  2.3.6).  
2.3.3   Other agreements and arrangements  
2.16.   South  Africa  has been a permanent member of t he G20 since 1999. In December  2010, 
South  Africa  joined the BRIC , which thus became the BRICS, a bloc of emerging economies 
composed by Brazil, the Russian  Federation , India, China, and South  Africa . The bloc aims for 
collaboration in international fora w here members share common objectives, as well as the 
undertaking of development projects in sectors such as agriculture, science, statistics, development 
finance institutions, security, and justice. The New Development Bank has been created to support 
some  of these projects.35 One of the commitments by BRICS members  at the 2019 Summit 
 
34 WTO document WT/G C/W/833, 8  November  2021. South  Africa  also submitted a draft ministerial 
decision calling for a reinvigoration of the work under the Work Programme, in WTO document 
WT/GC/W/838/Rev.2, 25  November  2021.  
35 New Development Bank. Viewed  at: https://www.ndb.int/ . WT/TPR/S/ 447 • South Africa  
 
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  Declaration was on cooperation against under -invoicing, although follow -up and implementation are 
still pending.  
2.17.   India, Brazil, and South  Africa  (IBSA) participate in a trilat eral forum for, inter alia, 
consultation and coordination on international and regional political issues , consultations on 
WTO-related issues , climate change policies , and security collaboration. It also envisages assistance 
in projects through an IBSA Fund.36 
2.4  Foreign investment regime  
2.18.   Trade and Investment South  Africa  (TISA), a division of the DTIC, is responsible for 
developing investment policies. Investment South  Africa (InvestSA), established in 2016, serves as 
the national investment agency to support foreign direct investment inflows and renders the services 
of a one -stop shop to promote and attract investment. Since  2019, InvestSA has overseen the 
implementation of South  Africa 's ease of doing business  (EODB) programme under the oversight of 
the Presidency. The Bizportal ( https://www.bizportal.gov.za ) is its e -government initiative , which 
enables online business registration with the Companies and Intellectual Properties 
Commission  (CIPC), reservation of a company's name, and registration for income tax and 
withholding taxes.  
2.19.   Foreign companies investing in South  Africa  must apply the law s applicable to all companies 
operating in the country , as well as sector -specific legislation. More precisely, they must register 
with the CIPC as required by the Companies  Act, 2008, before conducting business, opening a bank 
or financial account, establ ishing offices, acquiring intellectual property, or contracting employees.  
Companies must also apply other generally applicable laws, such as those relating to labour, 
corporate governance, competition, consumer protection, intellectual property, and the 
environment. In the context of this Review, a full understanding was not reached on the type and 
scope of Broad -Based Black Economic Empowerment  (B-BBEE) requirements on foreign companies 
investing in South  Africa.  However, it is understood that in the case s where foreign companies have 
global practices that prevent compliance with ownership elements of B -BBEE through the traditional 
sale of shares to black South  Africa ns, recognition of contributions as equity equivalent  (EE) can 
replace the direct sale of equity.37 
2.20.   Investment incentives for companies (both domestic and foreign) are detailed in Section  3.3.1 
and Section 4. A complete list of restrictions to foreign investment was not available.  
2.21.   The Competition Amendment Act (Act No.  18 of 201838) (Section  3.3.4.1) introduced a prior  
review mechanism under Section  18A for mergers involving a foreign acquiring firm, on national 
security grounds.39 The Act provides for the President to establish a committee to assess whether 
any such mergers would hav e an adverse effect on national security interests. It also requires the 
President to publish in the Government Gazette a list of national security interests, including the 
markets, industries, goods or services, sectors, or regions in which such a merger must be notified 
to the committee. As of mid -2023, Section  18A of the Act had not come into effect ; as such , the 
committee envisaged therein has not been established. The President had not issued regulations to 
outline the list of national security interes ts, nor issued regulations to outline the processes for 
compulsory dual notification to the Competition Commission and the committee.  
2.22.   South  Africa  remains a party to the SADC's 2010  Protocol on Finance and Investment. Under 
the Protocol, signator ies must g ive investors "fair and equitable treatment" and pay "prompt, 
 
36 IBSA, About IBSA . Viewed  at: http://www.ibsa -trilateral.org/ . 
37 DTIC, B-BBEE Codes, B -BBEE Acts, Strategies & Policies . Viewed  at: 
http://www.thedtic.gov.za/financial -and-non-financial -support/b -bbee/b -bbee-codes -b-bbee-acts-strategies -
policies/ . 
38 Competition Amendment Act No.  18 of 2018. Viewed  at: https://www.gov.za/documents/competition -
amendment -act-18-2018-englishafrikaans -14-feb-2019-0000. 
39 UNCTAD  (2019), " South Africa Introduces a Screening Mechanism of Foreign Investment ", 
14 February . Viewed  at: https://investmentpolicy.unctad.org/investment -policy -
monitor/measures/3406/south -africa -introduces -a-screening -mechanism -of-foreign -investment -. WT/TPR/S/ 447 • South Africa  
 
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  adequate and effective compensation " to foreign investors in the event of expropriation. It also 
provides for international arbitration for foreign investors.40 
2.23.   Over the review period, South  Africa introduced new investment legislation, to provide certain 
guarantees to investors from countries with which  it does not have a bilateral investment treaty 
(BIT) in force, but also to ensure that investor -state disputes  are first handled through domesti c 
courts, rather than through an international arbitration body.41 The 2015  Protection of Investment 
Act entered into force in June  2018. Its aims are to (i)  provide national treatment to f oreign investors 
and for their investments not to be treated less f avourably than South  Africa n investors in like 
circumstances; (ii) ensure the physical security of property owned by foreign investors be at the 
level provided to domestic investors; (iii)  enable the repatriation of funds, subject to taxation and 
other app licable legislation to foreign investors; and (iv)  provide a mediation process to resolve 
disputes . The Act indicates that new BIT s will be subject to the South  Africa n Constitution and 
national legislation.42 
2.24.   South  Africa  has BITs in force with China, Cuba, the Czech  Republic , Finland, the 
Islamic  Republic  of Iran, the Republic  of Korea , Mauritius, Nigeria, the Russian  Federation , Senegal, 
Sweden, and Zimbabwe.43 Since  2014, of South  Africa 's BIT s with Argentina and several countri es 
in Europe (Austria, Denmark, France, Germany, Greece, Italy, the Netherlands , Switzerland, and 
the United  Kingdom ) have been terminated.  
2.25.   South  Africa  currently has double taxation agreements (DTAs) in force with 78  economic 
partners.44 Since January  2014, new DTAs have entered into force with Cameroon; Chile; 
Hong Kong,  China ; Kenya; Qatar; and the United  Arab Emirates . New protocols have been added to 
existing DTAs with Botswana , Brazil , Cyprus , India, Norway , and Türkiye. Additionally, DTAs with 
Lesoth o, Mauritius, Singapore , and Zimbabwe were renegotiated.  
 
40 WTO document WT/TPR/S/324/Rev.1, 5  February  2016; and SADC , Protocol on Finance and 
Investment , Articles  5-6. Viewed  at: https://www.sadc.int/sites/default/files/2021 -
08/Protocol_on_Finance__Investment2006.pdf . 
41 The Act has provisions that stipulate that the Government may consent to international arbitration 
subject to the exhaustion of domestic remedies.  
42 Protection of Investment Act. Viewed  at: 
https://static.pmg.org.za/151215Act22of2015ProtectionOfInvestmentAct.pdf . 
43 UNCTAD , Investment Policy Hub: South  Africa . Viewed  at: 
https://investmentpolicy.unctad.org/internationa l-investment -agreements/countries/195/south -africa . 
44 SARS , Summary of All Bilateral Double Taxation Agreements and Protocols Amending the Double 
Taxation Agreements . Viewed  at: https://www.sars.gov.za/wp -content/uploads/Legal/Agreements/LAPD -IntA-
DTA-2013-01-Status -Overview -of-All-DTAs-and-Protocols.pdf . WT/TPR/S/ 447 • South Africa  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures and requirements  
3.1.  The Customs and Excise Act, 1964 sets out the rules governing customs procedures in 
South  Africa.45 It has been amended a number of times since 2014. According to the authorities, 
major amendments include those related to the establishment of Special Economic Zones, the 
introduction of the advance ruling system in customs valuation, and an export tax on  scrap metal. 
In 2014, the Customs Control Act, 2014 and the Customs Duty Act, 2014 were published in the 
Government Gazette; they will come into effect on a date yet to be determined by the President.46 
The Customs Control Act establishes a customs contro l system for all goods imported into or 
exported from South  Africa, and prescribes the operational aspects of the system.47 The Customs 
Duty Act provides for the imposition, assessment, and collection of customs duties. The authorities 
state that, as the P resident has not determined the date for their entry into force, these two Acts 
have not been implemented.  
3.2.  Customs procedures are administered by the Customs Administration48 under the South  African 
Revenue Service (SARS).  
3.3.  Any person (local or foreign) who  imports goods into South  Africa must register with SARS as 
an importer. Any foreigner (individual or legal person) must nominate a registered agent located in 
South  Africa before registering to import goods into the country. The nominated agent must assum e 
full liability for the acts of the foreign principal in relation to any business activity with Customs.49 
3.4.  Upon request by Customs, based on random selection by the risk management system, import 
clearance documentation (e.g.  commercial invoice, bill of l ading, insurance documents, and packing 
list) must be lodged within seven days50 after the arrival of goods in South  Africa. A certificate and 
declaration of origin are required when preferential duties are applicable and for goods subject to 
anti-dumping or countervailing duties. Import permits/licences are required in certain instances 
(Section  3.1.2). According to the authorities, provided that all requirements (including 
documentation) are met, it may take four hours for cargo  arriving by sea  to be clea red if it is 
risk-free. 
3.5.  The data provided by the authorities show an increase in the percentage of low -risk goods to 
reach almost 98% of total imports in 2022 -23. Low -risk goods enter the South  African market with 
no reaction from the system, while some of  them may be subject to post -clearance inspection. 
Medium -risk goods are subject to documentary review requirements, and high -risk goods must be 
physically examined.  
3.6.  Since the previous Review, SARS has introduced various reforms on trade facilitation, with  a 
view to further streamlining procedures. In particular, in 2020, SARS launched the Registration, 
Licensing and Accreditation (RLA) system, a self -service automated system to make it easier for 
stakeholders and intermediaries to register and/or  be licens ed for Customs purposes. Customs 
clients submit their RLA applications on the electronic RLA platform through eFiling.51 Other reforms 
include setting up an Advance Payment Notification (APN) data system to reduce illicit financial flows, 
and adopting a Nu mber Plate Recognition system on the cargo processing system at land ports.52 
 
45 SARS, Customs and Excise Act, No.  91 of 1964. Viewed  at: https://sars.mylexisnexis.co.za/# .  
46 SARS, New Customs Legislation Update . Viewed  at: 
https://www.sars.gov.za/customs -and-excise/about -customs/new -customs -legislation -update/ .  
47 Government Gazette, No.  37862 , 23 July 2014,  Customs Control Act, 2014 . Viewed  at: 
https://www.sars.gov.za/wp -content/uploads/Legal/AAB C/LAPD -LPrim -Act-2014-03-Customs -Control -Act-2014
.pdf.  
48 SARS, About Customs . Viewed  at: https://www.sars.gov.za/customs -and-excise/about -customs/ .  
49 SARS, Importers . Viewed  at: 
https://www.sars.gov.za/customs -and-excise/registration -licensing -and-accredita tion/importers/ .  
50 Or within such further time as the Commissioner may allow.  
51 SARS, Registration, Licensing and Accreditation . Viewed  at: 
https://www.sars.gov.za/customs -and-excise/registration -licensing -and-accreditation/ .  
52 SARS (2022),  Annual Report – South  African Revenue Service 2021/22 . WT/TPR/S/ 447 • South Africa  
 
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  3.7.  On 30  November  2017, South  Africa ratified the WTO  Agreement on Trade Facilitation. The 
current rate of implementation commitments stands at 90.3% (all Category  A), with a timefr ame 
spanning from February  2017 to February  2038.53 In 2018, South  Africa notified the definitive dates 
for implementation of its Category  B provisions: 22  February  2028 for advance rulings, and 
22 February  2038 for  the implementation of a  single window.54 
3.8.  Tariffs, excise duties, and most rebates and drawbacks are harmonized within SACU 
(Main  Report, Section  3), while VAT and  other taxes/ levies are not. South  Africa imposes levies on 
both imported and domestically produced goods. These include:  
• Levies on ce rtain agricultural products (Section  4.1.1.2 ); 
• Environmental levies on plastic carriers and flat bags, electrical filament lamps, tyres, carbon 
dioxide emissions of motor vehicles, and a carbon tax (Section  1.1); 
• Levies on certain petroleum oils and oils obtained from bituminous minerals (fuel levies, 
including road -accident -fund levy); and  
• A health promotion levy on sugary beverages, and preparations for making sugary 
beverages.  
3.9.  VAT is levied at a standard rate (currently 15%, up from 14% from 1  April 2018) on all 
imported or domestically produced goods and services, with a limited range of goods and services 
exempt or subject to zero rate.55 The authorities state that, during this review period, VAT was not   
collected from local recipients of the su pply of electronic services; instead, it  was levied on foreigners 
who supply electronic services to local recipients.  
3.10.   Zero-rated VAT applies to, inter alia, exports; certain goods supplied to enterprises located in 
customs -controlled areas (CCAs) and Speci al Economic Zones (SEZs), and to SEZ operators; petrol, 
diesel, and illuminating paraffin; certain basic foodstuffs; and certain services, such as international 
transport and related services.56 
3.11.   Currently, zero -rated VAT also applies to certain agricultura l products such as animal feed, 
seedlings, and fertilizers. The VAT Act was amended to remove this zero rating with effect from a 
date to be determined by the Minister of Finance.57 
3.12.   VAT is exempted on, inter alia, financial services; public transportation of fare -paying 
passengers by road and rail; the supply of residential accommodation under a lease agreement; and 
the supply of certain educational services.  
3.13.   The base for the VAT remains the same as at the time of the previous Review. For loc ally 
produced goods and services, VAT is collected on the "domestic open -market value". For imported 
goods, VAT is collected on the f.o.b. value plus a 10% "upliftment" on the value for customs duty 
purposes. The authorities indicate that t he 10% "upliftme nt" is to adjust the taxation base to the 
c.i.f. value, as transport and insurance costs are not taken into account if the VAT were to be based 
on the f.o.b. value only. The 10% coefficient does not apply to imports from other SACU members. 
On imported ser vices, VAT is collected on the "considered value" of the supply, or the open market 
value, whichever is greater.  
 
53 WTO TFA database. Viewed  at: https://tfadatabase.org/en/members/south -africa . 
54 WTO document G/TFA/N/ ZAF/1/Add.1, 28  February  2018.  
55 SARS (2022), Taxation in South  Africa . Viewed  at: https://www.sars.gov.za/wp -
content/uploads/Ops/Guides/ Legal -Pub-Guide -Gen01 -Taxation -in-South -Africa.pdf .  
56 International transport (all modes) of persons and goods are subject to zero -rate VAT, with certain 
conditions and exceptions. Related services, such as insuring or a rranging of insuring of transport, as well as 
"ancillary transport services" such as stevedoring, cargo inspection, preparation of customs documentation, 
and storage of transported goods or goods to be transported are also subject to zero -rate VAT.  
57 SARS (2022), Taxation in South  Africa .  WT/TPR/S/ 447 • South Africa  
 
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  3.1.2   Import prohibitions, restrictions, and licensing  
3.14.   A Border Management Authority (BMA) was established on 1  April 2023.58 The BMA is in 
charge of  certain functions transferred from the Department of Home Affairs; the Department of 
Agriculture, Land Reform and Rural Development; the Department of Health; and the Department 
of Forestry, Fisheries and the Environment. These functions relate to immigra tion, health, 
agriculture  (SPS), environmental, and access control at the 72  ports of entry in South  Africa.59 
3.15.   The importation of the following goods, inter alia, into South  Africa is prohibited: narcotic and 
habit-forming drugs in any form; fully automati c, military, and unnumbered weapons, explosives, 
and fireworks; poison and other toxic substances; cigarettes with a mass of more than 
2 kilogrammes per 1,000; goods to which a trade description or trademark is applied in 
contravention of any Act (e.g.  counterfeit goods); unlawful reproductions of any works subject to 
copyright; and prison - and penitentiary -made goods.  
3.16.   In 2016, South  Africa notified to the WTO that its import control is regulated mainly under 
the International Trade Administration Act (Act No. 71 of 2002).60 In 2018, South  Africa notified its 
import licensing procedure s61, and in 2019 (the most recent notification regarding its import licensing 
procedure s), South  Africa confirmed that the procedure s and the legislation remained unchanged.62 
The authorities indicate that South  Africa plans to update its relevant notification before the end 
of 2023.  
3.17.   The notifications indicated that South  Africa's import licensing regime was complying with 
international agreements; health, environmental, and saf ety requirements; and public interest.63 
Applications for import licences are considered mainly by the Import and Export Control Directorate 
of the ITAC, or:  
• The Police Service (Narcotics Bureau) for the importation of narcotic drugs and psychotropic 
subst ances in terms of the 1988 United Nations Convention Against Illicit Traffic in Narcotic 
Drugs and Psychotropic Substances;  
• The National Regulator for Compulsory Specifications for homologation of tyres for vehicles 
to ensure required safety specifications ; 
• The Department of Environment Affairs in terms of the Basel Convention on the Control of 
Transboundary Movement of Hazardous Wastes and Their Disposal, and the Montreal 
Protocol on Substances that Deplete the Ozone Layer;  
• The Department of Energy for fossil fuels;  
• The Department of Health (Radiation Control) for radioactive chemical elements and 
isotopes; and  
• The Police Service (Firearm Register) for arms and ammunitions.64 
3.18.   A licence is valid for a maximum of 12 months and is not extendable. According to 
South  Africa's notification to the WTO, unused licences are not transferrable, and there is no penalty 
for non -use of a licence or portion of a licence.65 
 
58 Parliamentary Monitoring Group, Border Management Authority Act of 2020. Viewed  at: 
https://pmg.org.za/bill/645/ .  
59 Department of Home Affai rs. Viewed  at: http://www.dha.gov.za/ .  
60 WTO document G/LIC/N/1/ZAF/1, 2  December  2016.  
61 WTO document G/LIC/N/3/ZAF/7, 19  December  2018.  
62 WTO document G/LIC/N/3/ZAF/8, 4  November  2019.  
63 WTO document G/LIC/N/3/ZAF/7, 19  December  2018.  
64 WTO document G/LIC/N/3/ZAF/7, 19  December  2018.  
65 WTO document G/LIC/N/3/ZAF/7, 19  December  2018.  WT/TPR/S/ 447 • South Africa  
 
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  3.19.   Out of over 8,400 tariff lines (at the HS  8-digit level), around 280 tariff lines are subject to 
import controls66, i.e. a permit is required (Table  3.1). 
Table  3.1 Goods subject to import control measures under ITAC regulations, 2023   
Description  Tariff heading  Purpose of control  
Used goods, waste and scrap  Various  Health, environmental reasons, public 
interest, and in terms of the Basel 
Convention  
Fish, fresh or frozen, 
crustaceans and molluscs  03.02 to 03.08  Environmental reasons  
Asbestos  25.24  Environmental reasons  
Mineral fuels, mineral oils and 
products of their distillation  27.07 -27.15  Strategic reasons  
Radioactive chemical elements 
and radioactive isotopes  28.44, 28.45  Health and environmental reasons  
Chemicals applicable in the use 
of drug manufacturing  
Salt and optical isomers of 
substa nces included in the 
table 2806.10, 2807.00, 2841.61, 
2902.30, 2909.11, 2914.11, 
2914.12, 2914.31, 2915.24, 
2916.34, 2922.43, 2924.23, 
2932.91, 2932.92, 2932.93, 
2932.94, 2933.32, 2939.41, 
2939.42, 2939.44, 2939.49, 
2939.61, 2939.62, 2939.63  1988 United Nations Convention against 
Illicit Traffic in Narcotic Drugs and 
Psychotropic Substances  
Rubber and articles thereof 
including  new and used 
pneumatic tyres  40.03, 40.04, 40.11, 40.12  Monitoring for quality specification  
Used clothing and rags  63.09, 63.10  Public interest  
Cobalt, cadmium antimony, 
manganese, beryllium, 
chromium, germanium, 
vanadium, gallium, hafnium, 
indium, niobium, rhenium and 
thallium  81.05, 81.07, 81.10, 81.11, 
81.12  Health and environmental reasons  
Metal working machinery  84 Monitoring the processing of scrap 
metals, to prevent stolen infrastructure 
including copper cables from being 
smelted, granulated or cutting into 
pieces to hide their origin.  
Road wheels fitted with tyres  8708.70, 8716.90.20  Monitoring for quality specification  
Revolvers and pistols, other 
firearms, parts, ammunition 
and parts  9302-9306 Security reasons  
Gambling machines  9504.30  Quality specifications and public interest  
Ozone -depleting substances  2903.19.10, 2903.39, 2903.7, 
3808.91.1, 3 808.92.3, 
3808.93.8, 3808.94.8, 
3808.99.1, 3813.00.29, 
3813.00.31, 3813.00.33, 
3813.00.35, 3813.00.37, 
3813.00.39, 3813.00.41, 
3813.00.43, 3814.00.1, 
3814.00.2, 3814.00.3, 
3824.71, 3824.72, 3824.73, 
3824.74, 3824.75, 3824.76, 
3824.77, 3824.78, 3824.79  Montreal Protocol  
Source:  WTO document G/LIC/N/3/ZAF/7, 19  December  2018.  
3.20.   South  Africa notified to the WTO that tariff quotas (TQs) continued to be applied on 53  types 
of agricultural products, on an MFN basis.67 Some out -of-quota rates are lower or equal to the 
corresponding in -quota rates (Table  A3.1). According to the authorities, if TQs are not providing any 
advantages to importers, the Department of Agriculture does not open these items. For this reason, 
from 2017 many TQs are "not opened" (i.e.  no in -quota imports of these products entered the 
 
66 ITAC (2022), Import and Export Control . Viewed  at: 
http:// www.itac.org.za/upload/ImportExportControl.pdf .  
67 WTO documents G/AG/N/ZAF/91, 16 August 2018; G/AG/N/ZAF/94, 2 March 2020; G/AG/N/ZAF/95, 
2 March 2021 ; G/AG/N/ZAF/109, 14  February  2022; and G/AG/N/ZAF/110, 14  February  2022.  WT/TPR/S/ 447 • South Africa  
 
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  South  African market). Out of 53  types of products, 30  types in 2017 and 28  types in 2018 -20 were 
"not opened". The average fill ratio of TQs dropped from 75% in 2016, to 25% in 2017, 21% in 
2018, 19% in 2019, and 2 0% in 2020. If excluding "not opened" items, the average fill ratio became 
26.7% in 2017, 20.5% in 2018, 19.1% in 2019, and 19.9% in 2020.  
3.21.   All TQs are global quotas. They are administered through import licences issued by the 
Department of Agriculture, and  applicants need to register with SARS and the Department of Trade, 
Industry and Competition (DTIC).68 
3.2  Measures directly affecting exports  
3.2.1   Export procedures and requirements  
3.22.   In general, customs requirements and procedures for exports from South  Africa are similar 
to those for imports (Section  3.1.1).  
3.23.   SARS issues certificates of origin (CoOs) for exports from South  Africa to its RTA partners, 
and some chambers of commerce issue CoOs for exports under GSP schemes.  
3.2.2   Export taxes, charges, and l evies  
3.24.   Under the Export Levy Act, an export tax is levied on unpolished diamonds at a rate of 5% of 
the f.o.b. value, with a view to encouraging local processing, developing skills, and creating 
employment.  Export levies apply to the export and/or productio n of various agricultural products 
(Section 4.1.1.2).  
3.25.   On 1 August  2021, an export tax was introduced on scrap metals under the Customs and 
Excise Act, 1964.69 According to the authorities, this duty was introduced on national security 
grounds, and is to "p rovide foundries and mills with better access to higher quality and more 
affordable scrap metals in the local market"70, as well as to stimulate domestic production, enhance 
investment and create jobs .71 Certain ferrous and non -ferrous waste and scrap metals are subject 
to ad valorem  duty rates (10%, 15%, or 20%), while agreement -specific rates apply to 
South  Africa's exports under its RTA agreements.72 
3.26.   Before the introduction of the export duty on scrap m etals, the ITAC introduced a Price 
Preference System (PPS) with a view to improving the availability of scrap metal at "affordable" 
prices for foundries and mills in the domestic market. Under the PPS, export authorization from the 
ITAC may be granted if e xporters demonstrate that they sold scrap metals to the domestic industry 
at a discount price or other formula determined by ITAC. However, an investigation by ITAC found 
that the PPS alone was unable to achieve the target of providing foundries and mills with "affordable" 
and quality scrap metal. Against this backdrop, the export duty on scrap metal was introduced, and 
the PPS was extended from 31  July 2021 to 31  July 2023.73 
3.2.3   Export prohibitions, restrictions, and licensing  
3.27.   In November  2022, the Government  decided to prohibit exports of ferrous and non -ferrous 
metal waste, scrap, and semi -finished ferrous and non -ferrous metal products74 for six months (from 
 
68 For details of the TQ allocation system, please refer to WTO document WT/TPR/S/324/Rev.1, 
5 February  2016.  
69 SARs (2022),  Annual Report – South  African Revenue Service 2021/22 . Viewed  at: 
https://www.sars.gov.za/wp -content/uploads/Docs/StratAnnualPerfplans/S ARS-AR-27-Annual -Report -2021-20
22.pdf . 
70 SARS, Export Duty on Scrap Metals . Viewed  at: https://www.sars.gov.z a/customs -and-excise/export -
duties -and-levies/export -duty-on-scrap -metals/ .  
71 SARS (2021), Export Duty on Scrap Metal. Viewed  at: https://www.sars.gov.za/wp -
content/uploads/Ops/Guides/LAPD -CE-G03-Export -Duty-on-Scrap -Metal.pdf .  
72 SARS, Sche dule 1/Part 6 of the Schedule to the Act. Viewed  at: https://www.sars.gov.za/wp -
content/uploads/Legal/SCEA1964/LAPD -LPrim -Tariff-2021-02-Schedule -No-1-Part-6.pdf.  
73 SARS, Export Duty on Scrap Metals . 
74 With exceptions for stainless steel and ferrous waste and scrap generated in the ordinary course of 
business as a by -product of a manufacturing process . WT/TPR/S/ 447 • South Africa  
 
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  30 November  2022 to 30  May 2023), so as to "limit damage to infrastructure and the economy".75 
On 15  June 2023, this export ban was extended for another six months.76 The ban is complemented 
by an export permit system for semi -finished metal products, and an import permit system for 
furnaces and various other scrap transformation machines (Table  3.1), bo th from November  2022.  
3.28.   An export prohibition also applies to a certain grade of methyl bromide, in accordance with 
certain international environmental agreements.  
3.29.   According to an ITAC report, export controls may be maintained for the reasons of ensuring 
compliance with international obligations, assisting local manufacturers to obtain raw materials 
before they are exported, controlling the outflow of goods of a strategic nature, or curbing the 
exportation of smuggled or stolen goods.77 Out of around 8,400  tariff lines, about 180  lines are 
under export control, including precious stones, ferrous and non -ferrous waste and scrap, and used 
motor vehicles.78 
3.2.4   Export subsidies, finance, and assistance  
3.30.   South  Africa notified to the WTO that it did not provide export subsidies to its agricultural 
products in 2016, 2017, and 2018.79 The authorities state that South  Africa has not provided export 
subsidies to agricultural products since 2018  (Section 4.1.1) . 
3.31.   South  Africa maintains its duty rebate, refund, and drawback regime, under which importers 
can claim rebates, refunds, or drawbacks on imports of certain goods incorporated or used in goods 
to be exported (Main  Report, Section  3.4.6). South  Africa also has its country -specific rebate 
programme – the Gautrai n Rapid Rail Link project.  
3.32.   South  Africa's Industrial Development Zone (IDZ) Programme was replaced by the Special 
Economic Zone (SEZ) Programme in 2016.80 In accordance with the Special Economic Zones Act 
No. 16 of 2014 (SEZ  Act), an SEZ is an economic dev elopment tool to promote national economic 
growth and exports, by using support measures to attract "targeted" foreign and domestic 
investments and technology.81 "Targeted" investments include investments supporting the 
Government's economic and industrial  development policies.  
3.33.   Compared with IDZs, which were more export -oriented and provided only VAT and customs 
tariff incentives, SEZs have broader coverage and provide more incentives to eligible businesses. 
SEZs in South  Africa may be sector specific or mu lti-product, and are defined under the SEZ Act in 
the following categories:  
• IDZ: an industrial estate with domestic and foreign investment in value -added and 
export -oriented manufacturing industries and services;  
• Free port: a duty -free area adjacent to a p ort of entry where imported goods may be 
unloaded for value -adding activities;  
• Free Trade Zone: a duty -free area offering storage and distribution facilities for value -adding 
activities within an SEZ for subsequent export; and  
 
75 Government Gazette No.  47627, 30  November  2022.  
76 Government Gazette No.  48791, 15  June 2023.  
77 ITAC (2022), Import and Export Control.  
78 ITAC (2022), Import and Export Control . 
79 WTO documents G/AG/N/ZAF/93, 3  October  2018; G/AG/N/ZAF/105, 21  Septem ber 2021; and 
G/AG/N/ZAF/107, 27  September  2021.  
80 DTIC (2018), Special Economic Zones Advisory Board: Annual Report 2017/18. Viewed  at: 
http://www.thedtic.gov.za/wp -content/u ploads/SEZ_Annual_Report.pdf ; and DTIC, Special Economic Zones. 
Viewed  at: http://www.thedtic.gov.za/sectors -and-services -2/industrial -development/special -economic -zones/ . 
81 Government Gazette No.  37664, 19  May 2014, SEZ Act . Viewed  at: 
http://www.thedtic.gov.za/wp -content/uploads/SEZ_Act.pdf .  WT/TPR/S/ 447 • South Africa  
 
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  • Sector Development Zone: a zo ne focused on the development of a specific sector or industry 
through the facilitation of general or specific industrial infrastructure, incentives, or technical 
and business services, mainly for the export market.  
3.34.   A number of incentives are available to businesses located in SEZs and to SEZ operators, with 
a view to facilitating revenue generation, creating jobs, attracting FDI, and enhancing their 
international competitiveness.82 The authorities state that, as at 2023, six SEZs83 have been 
designated by the National Treasury for SEZ incentives. Investors located in these zones may apply 
for the following incentives, provided they fulfil a number of qualifying criteria.  
• 15% corporate tax to certain enterprises (those involved in the value chain leading to 
exports), compared with a standard tax rate at 28%. The authorities indicate that generally, 
services are excluded ; 
• Small business corporations (SBCs) located in an SEZ pay corporate income tax at either an 
applicable graduated rate (i.e.  tax rates increas e with the taxable income of the SBC), or 
15%, whichever is lower (Section  3.3.1) ;84 
• Building allowances: eligible companies may reduce their taxable income by claiming a 
special allowance (at a rate of 10% per year) on the cost of any new or unused buildi ng or 
improvement to such buildings ; 
• Employment Tax Incentive (ETI): for businesses outside SEZs, a standard ETI reduces the 
amount of PAYE (Pay as You Earn) by employers, with a view to encouraging businesses to 
employ people between 18 and 29 years old ( Section  3.3.1). For businesses within an SEZ, 
the age limit is lifted ; 
• Import tariff and excise duty incentives for businesses located in a CCA within an SEZ: if the 
imported goods are stored and go through manufacturing (including processing, cleaning, 
and repair) within the CCA, and are exported subsequently, their import tariffs and excise 
duties may be reduced or exempted. Goods manufactured in a CCA and subsequently 
supplied to the domestic market are subject to the payment of import tariffs and excise  
duties ; 
• VAT incentives for businesses located in a CCA within an SEZ: goods and services purchased 
by these businesses from the domestic market are subject to a zero -rate VAT, while goods 
and services they import are exempt from VAT. Goods sold to the dom estic market are 
subject to the standard VAT ; 
• 12I tax allowances: for eligible Greenfield investment (i.e.  new industrial projects using only 
new and unused manufacturing assets) and Brownfield investment (i.e.  expansions or 
upgrades of existing industrial  projects), investment or training allowances are provided 
(Section  3.3.1).85 
3.35.   An SEZ Fund was established and was effective from 1  July 2013 to 31  March  202386, with a 
view to providing multi -year funding for initiatives to improve SEZ infrastructure and r elated 
performance. So far, the bulk of the funding has been committed to infrastructure development 
inside SEZs.87 The authorities indicate that the nature of government funding cycles, which is often 
inflexible, may not meet investors' demand for rapid r esponse, and may hamper SEZ operators in 
financing their zone development. It is administered by the Industrial Finance Branch of the DTIC, 
with budget allocated by the National Treasury over a three -year period. According to the authorities, 
 
82 SARS Legal Counsel, Simplified Overview of Special Economic Zones Tax and Customs Incentiv es. 
83 These are Coega  IDZ, East London IDZ, Richards Bay IDZ, Dube Trade  Port, Maluti -A-Phofung  SEZ, 
and Saldanha Bay Freeport  IDZ. 
84 SARS Legal Counsel, Simplified Overview of Special Economic Zones Tax and Customs Incentives.  
85 DTIC, 12I Tax Allowance In centive . Viewed  at: 
http://www.thedtic.gov.za/financial -and-non-financial -support/incentives/12i -tax-allowance -incentive/ .  
86 DTIC, Special Economic Zones. Viewed  at: 
http://www.thedtic.gov.za/sectors -and-services -2/industrial -development/special -economic -zones/ . 
87 DTIC (2018), Special Economic Zones Advisory Board Annual Report 2017/18.  WT/TPR/S/ 447 • South Africa  
 
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  ZAR 1.4 billion was allocated for the current financial year, and the DTIC disbursed ZAR  357 million 
in the previous financial year.  
3.36.   The authorities state that a technical committee comprising representatives of the National 
Treasury, SARS, DTIC sector desks, and other  relevant stakeholders is in charge of considering 
applications for designation of new SEZs. Investors seeking to locate in an SEZ must apply to this 
SEZ and obtain approval from its board.  
3.37.   From 2016, all existing IDZs automatically became SEZs, while new SEZs were being 
established.88 By the end of FY2022/23, South  Africa had 11  SEZs located in different provinces: 
Atlantis SEZ, Coega IDZ, Dube Trade Port, East London IDZ, Maluti -A-Phofung SEZ, Musina/Makhado 
SEZ, Nkomazi SEZ, OR Tambo SEZ, Richards Ba y IDZ, Saldanha Bay Freeport IDZ, and Tshwane 
Automotive SEZ. Proposed SEZs, i.e. those anticipated to be designated in 2023, include Namakwa 
SEZ and Coega Pharmaceutical and Vaccine SEZ. The authorities indicate that by now, SEZs have 
attracted 190  operat ional investors, with 23,281  job posts created.  
3.38.   The Export Marketing and Investment Assistance (EMIA) Programme under the DTIC aims to 
partially compensate exporters for the costs incurred in developing export markets and to attract 
FDI (Table  A3.2).89 Trade and Investment South  Africa (TISA) and the Industrial Financing Branch 
(IFB) of the DTIC administer the EMIA programme. Assistance takes the form of exhibition fees, 
stand construction, and travel and daily allowances. Since 1  September  2022, the DT IC has 
implemented a new Online Incentive Solution (OIS) platform, and all EMIA individual participation 
applications must be submitted via this channel.  
3.39.   The DTIC manages two other export promotion incentives: the Sector Specific Assistance 
Scheme (SSAS), which provides cost -sharing grants to sector coordinators recognized by the DTIC, 
and the Capital Projects Feasibility Programme (CPFP), which partially covers feasibility study costs 
for projects promoting exports (Table  A3.2).  
3.40.   Under the DTIC, the Export Promotion Directorate remains responsible for supporting 
South  Africa's exports of goods and services. It provides information and advice on new markets 
and publishes reports on the export process, quality and other standards requirements, and 
e-commerce.  
3.41.   The Export Credit Insurance Corporation (ECIC) provides export credit insurance for goods 
and services, with a view to improving the competitiveness of South  African exporters. It provides 
insurance cover age for losses arising from both political risk and commercial risk. The ECIC is 
engaging with the DTIC to explore amending the Export Credit and Foreign Investment Re -Insurance 
Amendment Act, 1957, with a view to authorizing the ECIC to provide insurance cover to 
non-South  African financial institutions.90 In 2018, the ECIC signed a Memorandum of Understanding 
(MoU) with the African Export -Import Bank (Afreximbank), with a view to promoting trade and 
investment between South  Africa and the rest of Africa.91 In 2022, the top three countries in ECIC's 
insuran ce portfolio were Ghana, Zimbabwe, and Ethiopia, accounting for 46.9%, 26.1%, and 8.5%, 
respectively. The three largest sectors were power (43.4%), construction (24.8%), and construction 
including civil engineering structures (16.7%).92 
 
88 SARS Legal Counsel, Simplified Overview of Special Economic Zones Tax and Customs Incentives. 
Viewed  at: http://www.thedtic.gov.za/wp -content/uploads/SEZ_Tax.pdf .  
89 DTIC, Export Marketing and Investment Assistance (EMIA). Viewed  at: 
http://www.thedtic.gov.za/financial -and-non-financial -support/incentives/export -marketing -and-investment -as
sistance/ .  
90 ECIC (2022), Integrated Report 2022. Viewed  at: 
https://www.ecic.co.za/about -us/corporate -reports/integrated -reports/ .  
91 ECIC, ECIC and Afreximbank Partnership . Viewed  at: https://www.ecic.co.za/about -us/ecic -and-
afreximbank -partnership/ .  
92 ECIC, ECIC Corporate Governance . Viewed  at: https://www.ecic.co.za/vision -and-mission/ .  WT/TPR/S/ 447 • South Africa  
 
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  3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.42.   South  Africa has a myriad of incentive programmes. Many have requirements on localization 
and must be B -BBEE compliant, i.e.  be compliant with the Broad -Based Black Economic 
Empowerment Act, 2003, as amended, which seeks to correct non -participation in the economy by 
historically disadvantaged communities. The programmes may provide both non -tax incentives 
(e.g. cost-sharing grants, loans with preferential terms) and tax incentives.  
3.43.   Most incentives are administered by the DTI C and aim at, inter alia, encouraging innovation, 
promoting exports, attracting investment, and facilitating infrastructure development (Table  A3.2).  
3.44.   The DTIC also provides a number of incentives to various sectors including agriculture and 
aquaculture, ma nufacturing, and services such as the film industry. The Department of Tourism 
administers some incentive programmes for the tourism industry (Section  4.4.4). 
3.45.   Some incentives aim to increase employment, encourage R&D, improve energy efficiency and 
energy s aving, and facilitate the development of SMEs. Incentives are administered by various 
agencies such as SARS, the Department of Science and Innovation, the Industrial Development 
Corporation, and the Small Enterprise Development Agency (SEDA). The schemes i nclude:  
• The ETI93, which covers the period from 1  January  2014 to 28  February  2029, is a 
cost-sharing mechanism that reduces the amount of PAYE to be paid by employers, to 
encourage the recruitment of young workers (18 -29 years old);  
• Research & Development  Incentive (SIID) provides tax deductions for R&D expenditures that 
occurred before 1  October  2022: 150% of eligible operating costs are allowed for corporate 
income tax deduction;  
• Section  12H Learnership Agreement Tax Allowance (S12H) aims to encourage sk ill 
development of the workforce and is available for all learnership agreements  which  entered 
into force before 1  April 2022. It takes the form of tax deductions;  
• Energy Efficiency Allowance (S12L) aims to encourage entities to improve their energy 
efficiency. Eligible taxpayers are entitled to a tax deduction of ZAR  0.95 per kilowatt hour or 
kilowatt hour equivalent of energy efficiency savings;  
• SEDA's Technology Programme (STP) provides cash grants (capped at ZAR  600,000 per 
project) to small enterprises  with job creation potential. Small businesses with more than 
50% ownership by women who are in the manufacturing and processing sectors with high 
product demand, or service -related industries with a manufacturing component, are 
eligible.94 
3.46.   In accordance w ith the Income Tax Act, 1962, SBCs, i.e.  companies with an annual gross 
income of less than ZAR  20 million, are subject to progressive corporate income tax rates lower than 
the normal flat rate of 28%.95 
3.47.   The 12I Tax Incentive is designed to support Greenfield and Brownfield investments 
(Section  3.2.4). It offers support for both capital investment and training. Applications for this 
incentive made after 31  March  2020 are not accepted. The incentive takes the form of investment 
allowances, and trainin g allowances, and is managed by the DTIC. Eligible projects are:  
 
93 SARS, Employment Tax Incentive (ETI) . Viewed  at: 
https://www.sars.gov.za/types -of-tax/pay -as-you-earn/employment -tax-incentive -eti/; and SARS, Guide to 
the Employment Tax Incentive.  Viewed  at: https://www.sars.gov.za/wp -content/uploads/Ops/Guides/LAPD -
ETI-G01-Guide -to-the-Employment -Tax-Incentive.pdf .  
94 KPMG (2020), Incentivise Your Investment Strategy – A Guide to South  African Government and Tax 
Incentives . Viewed  at: 
https://assets.kpmg.com/content/dam/kpmg/za/pdf/2021/tax -and-government -incentive -guide -2020.pdf . 
95 SARS Legal Counsel, Simplified Overview of Special Economic Zones Tax and Customs Incentives.  WT/TPR/S/ 447 • South Africa  
 
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  • Greenfield projects with a minimum investment of ZAR  60 million;  
• Brownfield projects with a minimum additional investment of ZAR  30 million; and  
• Those projects classified under SIC Code, Sect ion C: Manufacturing.96 
3.3.2   Standards and other technical requirements  
3.48.   The legal framework for the setting of standards and technical regulations comprises the Legal 
Metrology Act (Act No.  9 of 2014); the Standards Act (Act No.  8 of 2008); the Accreditation f or 
Conformity Assessment, Calibration and Good Laboratory Practice Act (Act No.  19 of 2006); and the 
National Regulator for Compulsory Specifications Act (Act  No. 5 of 2008).  
3.49.   The South  African Bureau of Standards  (SABS) remains responsible for standards 
development and provides training, advisory , and conformity assessment services (including local 
content verification in designated sectors).97 It is also South  Africa's enquiry point under the 
TBT Agreement. The SABS is responsible for the notification of t echnical regulations to the WTO. It 
is a member of the International Organization of Standardization  (ISO), the International 
Electrotechnical Commission  (IEC), the African Regional Standardization Organization  (ARSO), and 
the Southern  African Development Community Cooperation in Standardization  (SADCSTAN).  
3.50.   The South  African National Accreditation System  (SANAS) assesses and accredits bodies that 
provide conformity assessment services (testing, inspection, and certification).98 In this regard, 
South  Africa has mutual recognition agreements  (MRAs ) in place with several regional cooperation 
bodies (Table  3.2). 
Table  3.2 MRAs with recognized regional cooperation bodies  
Recognized regional cooperation body  Scope of International Laboratory 
Accreditation Cooperation ( ILAC ) MRA 
recognition  
Inter-American Accreditation Cooperation (IAAC)  
European co -operation for Accreditation (EA)  
Asia Pacific Accreditation Cooperation Incorporated 
(APAC)  
African Accreditation Cooperation (AFRAC)  Calibration: ISO/IEC  17025  
Testing: ISO/IEC  17025  
Medical testing: ISO  15189  
Inspection: ISO/IEC  17020  
Proficiency testing providers: IS O/IEC  17043  
Reference material producers: ISO  17034  
Arab Accreditation Cooperation (ARAC)  Calibration: ISO/IEC  17025  
Testing: ISO/IEC  17025  
Medical testing: ISO  15189  
Inspection: ISO/IEC  17020  
Southern African Development Community 
Cooperation in Accreditation (SADCA)  Calibration: ISO/IEC  17025  
Testing: ISO/IEC  17025  
Source:  Information provided by the authorities.  
3.3.2.1   Standards  
3.51.   The SABS has numerous technical committees and subcommittees that prepare South  African 
National Standards (SANS) and other normative documents. SANS are developed in accordance with 
the rules set out in the SABS National Norm: 2021 Edition 2, "Norm for the development of 
South  African National Standards". All SANS go through various development stages. During this 
proces s, draft SANS are submitted for a 60 -day public comment period. All comments received are 
discussed and resolved by the relevant national committees through a consensus process. Draft 
standards need to be ratified by the Standards Approval Committee of the  SABS before being 
published in the Government Gazette.  
 
96 DTIC, 12I Tax Allowance Incentive . Viewed  at: 
http://www.thedtic.gov.za/financial -and-non-financial -support/incentives/12i -tax-allowance -incentive/ . 
97 SABS , Integrated Annual Report  2021/22 . Viewed  at: https://www.sabs.co.za/About -
SABS/docs/SABS_Annual_Report_20 21_22_Signed_051022.pdf . 
98 SANAS. Viewed  at: https://www.sanas.co.za/Pages/index.aspx . WT/TPR/S/ 447 • South Africa  
 
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  3.52.   In mid -2023, SABS' standards catalogue included 7,602  national standards, of which 
4,692  were adopted based on international standards and 2,911  were home -grown. The SABS 
follows a national plan for t he setting of standards, which is aligned with the priorities contained in 
South  Africa's National Development Plan (Section  2.2). 
3.3.2.2   Technical regulations  
3.53.   The Department of Trade, Industry and Competition  (DTIC) and other government entities , 
such as the dep artments responsible for communication, water and sanitation, health, and 
agriculture, are responsible for developing, approving, and amending technical regulations.  
3.54.   The National Regulator for Compulsory Specifications  (NRCS), an independent organization 
falling under the DTIC, is responsible for drafting technical regulations in the areas of 
electrotechnical; legal metrology; food and associated industries; automotives; chemicals; 
materials; and mechanical products. Government departments/entities and pers ons or companies 
may request the NCRS to develop or amend a technical regulation; this request must be justified. 
South  Africa has over 70  NRCS -administered technical regulations in force. Most of the 
products/services regulated by the NRCS require conform ity assessment in the country of origin 
before the products are imported to South  Africa.  
3.55.   In 2017, the NRCS released a document setting out the development approval processes for 
requests for new, as well as amendments to or withdrawal of existing, technic al regulations.99 As 
indicated by the authorities, the new procedure requires the NRCS to conduct a consultation with 
relevant stakeholders before the regulation is finalized.  
3.56.   Technical regulations are enforced under the Compulsory Specifications Act and t he Legal 
Metrology Act. Under the latter, suppliers of products/services are required to have NRCS 
certificates , such as a Letter of Authority and/or type approval certificate. Non -compliance with the 
regulations is punishable through a directive issued un der Section  15(1) and Section  15(3) of the 
NRCS Act. Under Section  15(3) , noncompliant products/services can either be recalled from the 
market, taken back to the country of origin, or confiscated or destroyed by the NRCS.  
3.57.   As indicated by the authorities, South  Africa has in place a National TBT Committee that meets 
three  times per year to gather information on notifications to be made to the WTO. All government 
entities that have responsibility for approving technical regulations participate. Over the review 
period, South  Africa notified 77  technical regulations to the WTO (Table  A2.1).  
3.58.   In 2018, the NCRS issued its Conformity Assessment Policy , which contains the general 
principles for recogni zing the competency of domestic and foreign conformity assessmen t 
bodies  (CABs), as well as setting minimum criteria for accepting conformity assessment results.100 
It states that as a general rule, the NRCS recognizes CABs that are accredited by SANAS, or other s 
affiliated with the International Accreditation Forum  (IAF) and/or the (ILAC, and it accepts their 
conformity assessment results. The Policy also indicates that where South  Africa is a signatory to an 
MRA or where the NRCS is signatory to a Technical Acceptance Agreement, the terms and con ditions 
stated therein are to be upheld by the  NRCS.  
3.3.2.3   Marking, labelling, and packaging  
3.59.   Over the review period, South  Africa notified several new labelling requirements to the 
WTO TBT Committee. These related to:  
• The labelling and advertising of foodstuffs.101 Reportedly , this will introduce several 
changes to advertising of foods on labels, including with respect to prohibiting ( i) use of 
words, logos , or pictures that imply food is superior in some way; ( ii) potentially 
 
99 NCRS  (2017), Development and Approval Process for Technical Regulations . Viewed  at: 
https://www.nrcs.org.za/Documents/Policies/Development%20and%20approv al%20process%20for%20technic
al%20regulations.pdf . 
100 NCRS  (2018), The Conformity Assessment Policy of the National Regulator for Compulsory 
Specifications  (NRCS) . Viewed  at: https://www.nrcs.org.za/Documents/Policies/NRCS%20CPO%20112 -
01%20Conformity%20Assessment%20Policy.pdf . 
101 WTO document G/TBT/N/ZAF/250, 21  April 2023.  WT/TPR/S/ 447 • South Africa  
 
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  misleading terms unless they are link ed to a protocol approved and registered with the 
Department of Agriculture or regulated under the Agricultural Product Standards Act; 
(iii) endorsements by celebrities, organizations , and medical practitioners; and ( iv) the 
use of the word "meat" where pr oducts contain less than 25% meat. It also proposes to 
make mandatory food warning labels for items high in sugar and fat;102 
• The labelling, advertising, and composition of cosmetics;103 
• Labelling of alcoholic beverages;  
• Labelling of locally manufactured and  imported tea, coffee, chicory, and related 
products;104 
• The packing and marking of certain food products under the Agricultural Product Standards 
Act (No. 119 of 1990), namely dried fruit , bread wheat , pulses , potatoes , peaches and 
nectarines , popcorn kern els, vinegar , garlic , fresh fruit , bananas , soya beans , pineapples , 
litchis , onions and shallots , rice, and tomatoes.105 Some of the marking requirements are 
in place to ensure that products are easily identifiable and traceable;  
• Packing and marking of proc essed meat products and certain raw processed meat 
products106; 
• Goods and packages containing genetically modified organisms or ingredients or 
components107; and 
• Energy efficiency labelling of electrical and electronic apparatus.108 
3.60.   Specific trade concerns have been raised in the TBT  Committee regarding (i)  regulations 
relating to the labelling of alcoholic beverages; (ii)  regulations relating to the composition, 
production , and labelling of wine and spirits intended for sale in South  Africa; (iii)  amendment  to 
regulations relating to health messages on container labels of alcoholic beverages; and (iv)  labelling 
and advertising of pre -packaged foodstuff.109 
3.3.3   Sanitary and phytosanitary requirements  
3.61.   South  Africa's main SPS  requirements remain the same as at the t ime of the previous 
Review.110 All imported animal, plant, and food products, including those from other SACU members, 
must meet South  Africa's SPS  requirements. If a consignment does not meet the import 
requirements, risk management measures will be undert aken, i.e.  the consignment may be treated 
and released, sent back to the country of origin, or destroyed. An appeal system is available under 
most of the SPS  laws. South  Africa actively participates in and gets guidance from the Codex 
Alimentarius, the Wor ld Organisation for Animal Health (WOAH, formerly OIE), and the International 
Plant Protection Convention (IPPC).  
 
102 Businesstech  (2023), " Big Changes for Food Labels in South  Africa – Including Sugar Warnings and 
an End to 'Super-Food'", 6 February . Viewed  at: https://businesstech.co.za/news/lifestyle/662355/big -
changes -for-food-labels -in-south -africa -including -sugar -warnings -and-an-end-to-super -food/. 
103 WTO document s G/TBT/N/ZAF/225, 8  March  2018; and G/TBT/N/ZAF/209, 19  September  2016.  
104 WTO documents G/TBT/N/ZAF/242, 16  March  2020; and G/TBT/N/ZAF/241, 13  March  2020.  
105 WTO documents G/TBT/N/ZAF/248, 28  September  2022; G/TBT/N/ZAF/239, 26  September  2019; 
G/TBT/N/ZAF/ 234, 13  February  2019; G/TBT/N/ZAF/233, 3  December  2018; G/TBT/N/ZAF/230, 27  June 2018; 
G/TBT/N/ZAF/229, 14  May 2018; G/TBT/N/ZAF/227 , 25 April 2018; G/TBT/N/ZAF/219, 9  August  2017; 
G/TBT/N/ZAF/217, 12  April 2017; G/TBT/N/ZAF/215, 16  February  2017; G/TBT/N /ZAF/212, 6  October  2016; 
G/TBT/N/ZAF/195, 29  March  2016; G/TBT/N/ZAF/189, 6  May 2015; G/TBT/N/ZAF/179, 25  September  2014; 
G/TBT/N/ZAF/175, 7  March  2014; and G/TBT/N/ZAF/174, 28  February  2014.  
106 WTO document s G/TBT/N/ZAF/238, 4  June 2019; and G/TBT/N/ZAF/2 40, 8 October  2019.  
107 WTO document G/TBT/N/ZAF/216, 12  April 2017.  
108 WTO document G/TBT/N/ZAF/173, 14  February  2014.  
109 WTO e -Ping. Viewed  at: 
https://epingalert. org/en/Search/TradeConcerns?domainIds=1&memberResponding=C710 . 
110 WTO document WT/TPR/S/324/Rev.1, 5  February  2016.  WT/TPR/S/ 447 • South Africa  
 
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  3.62.   All departments responsible for SPS  controls transferred their relevant functions to the newly 
established BMA as from April  2023 (Section  3.1.2). These include the Department of Agriculture, 
Land Reform and Rural Development (DALRRD) (formerly known as the Department of Agriculture, 
Forestry and Fisheries  (DAFF)); the Department of Health (DoH); and the DTIC (including National 
Regulator for Compulsory Specifications (NRCS)).  
3.63.   South  Africa's SPS  laws include the Agricultural Pests Act; the Agricultural Product Standards 
Act; the Animal Diseases Act; the Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies 
Act; the Foodstu ffs, Cosmetics and Disinfectants Act; the Liquor Products Act; the Meat Safety Act; 
the Medicines and Related Substances Act; and the National Regulator for Compulsory 
Specifications  Act.111 
3.64.   From 1  January  2014 to 20  July 2023, South  Africa submitted 60  SPS-related notifications to 
the WTO, including 9  emergency notifications referring to a temporary ban of imports of certain 
animal, plant, and food products due to the outbreak of various animal or plant diseases.112 Other 
notifications relate to amendments o f regulations, changes to the certification process, and 
compulsory requirements or specifications for imports into South  Africa. Major amendments to 
SPS-related legislation include the following:  
• In 2017, amendments were made to the National Regulator for  Compulsory Specifications 
Act, 2008, so that for all imports of fish and fishery products and canned meat products, the 
competent authority in the exporting country must issue a health certificate/guarantee 
(adhering to the CODEX Principles and Code of Pr actice, etc.) for each consignment exported 
to South  Africa;113 
• In 2021, the Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies Act,  1947 
was amended to include, inter alia, provisions on the Globally Harmonized System (GHS) of 
Classification  and Labelling of Chemicals, and the OECD principles of Good Laboratory 
Practice;114 and 
• In 2022, the Foodstuffs, Cosmetic and Disinfectants Act,  1972 was amended. The 
amendment focuses on the maximum limits for pesticide residues that may be present in 
foodstuffs.115 
3.65.   South  Africa is also developing some new legislation related to SPS  measures. For example, 
in 2021, the Plant Health (Phytosanitary) Bill (B14 -2021) was prepared to provide for phytosanitary 
measures so as to, inter alia, prevent the introductio n and spread of regulated pests in the country, 
and regulate the movement of plants, plant products, and other regulated articles into, within, and 
out of the country.116 The authorities state that the Bill was tabled before Parliament for 
consideration and  deliberation.  
3.66.   At the WTO, four  SPS-related specific trade concerns (STCs) were raised by trading partners 
to South  Africa between 2014 and 2023. They are related to general import restrictions due to BSE 
(ID 362); South  Africa's revised veterinary health certificates for the import of cattle, sheep, and 
goats from Botswana, Eswatini, Lesotho, and Namibia (ID  404); import restrictions on poultry due 
to highly pathogenic avian influenza (ID  431); import restrictions on bovine meat, pet food, and 
other by -products of animal origin (ID  522); and delays in granting SPS access for poultry, beef, 
pork, fish, and seafood (ID  564).117 
 
111 WTO document WT/TPR/S/324/Rev.1, 5  February  2016.  
112 WTO SPS & TBT Platform, SPS notifications. Viewed  at: 
https://eping.wto.org/en/Search/Index?domainIds=2&countryIds=C710&distributionDateFrom=2014 -01-01.  
113 Government Gazette No.  41186, 20  October  2017; and WTO document G/SPS/N/ZAF/56, 
30 October  2017.  
114 Government Gazette No.  44726, 18  June 2021; and WTO document G/SPS/N/ZAF/75, 7  July 2021.  
115 Government Gazette No.  47632, 2  December  2022; and WTO document G/SPS/N/ZAF/78, 
22 December  2022.  
116 South  African Parliament, Plant Health (Phytosanitary) Bill (B14 -2021) . Viewed  at: 
https://www.parliament.gov.za/bill/2298248%23:~:text=To%20provide%20for%20phytosanitary%20measur
es,of%20the%20Republic%3B%20and%20to .  
117 WTO, South  Africa and the WTO . Viewed  at: 
https://www.wto.org/english/thewto_e/countries_e/south_africa_e.htm . WT/TPR/S/ 447 • South Africa  
 
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  3.67.   South  Africa developed an electronic system for import and/or export certification 
(eCertification) via the National Plant Protection Organisation of South  Africa (NPPOZA). The 
exporting country must provide a phytosanitary certificate that proves to the importing country that 
its SPS  requirements are satisfied. South  Africa began the first phase of the migration to the new 
system in Nov ember  2019. In 2022, South  Africa developed a module to allow its trading partners 
to send their electronic phytosanitary certificates (ePhytos), which used to be sent via the IPPC hub, 
to the NPPOZA directly.118 The authorities indicate that the eCertifica tion export system is fully 
functional and South  Africa is exchanging ePhytos with all the trading partners.  
3.68.   The Genetically Modified Organisms Act,  1997 (Act No.  15 of 1997), as amended by 
Genetically Modified Organisms Act,  2006 (Act No.  23 of 2006), reg ulates the development and use 
of GMOs. There has been no amendment to the GMO Act since 2014.  
3.69.   Under the GMO Act, any activity with GMOs, including importation, exportation, transit, 
development, production, release, and distribution, is not allowed in Sou th Africa without a permit. 
In 2022, South  Africa published a list of GMO approved activities, where clearance and approval are 
granted for importation for use as food or feed. From 2001 to 2022, a total of 105 approvals were 
granted, related mainly to mai ze (75  approvals), soybean (22), and cotton (4). One approval each 
was granted to the importation of canola, oilseed rape, rice, and wheat.119 
3.70.   In 2021, South  Africa made a public notice that the New Breeding Techniques (NBTs) and 
their products were going t o be subject to the regulatory system and the risk assessment framework 
for GMOs (with revised application templates for contained use, trial release, commodity clearance, 
and general release). The NBTs provide new methods for genetic engineering and enabl e the 
production of a range of innovative products that are differentiated from those generated using early 
genetic engineering tools.120 
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.71.   The main institution on competition remains the Competition Co mmission (CCSA), which is 
responsible for investigating, controlling, and evaluating restrictive business practices, abuse of 
dominant positions, and intermediate mergers. The Competition Tribunal adjudicates complaints of 
prohibited conduct, authorizes or  prohibits large mergers, and adjudicates appeals against the 
Commission's decisions on intermediate mergers and exemptions. The Competition Appeal Court 
considers appeals against decisions of the Tribunal.  
3.72.   The CCSA has signed MoUs with sectoral regulators,  some of which are responsible for sectors 
in which there may be a natural monopoly .121 It is also in the process of signing MoUs with the 
Construction Industry Development Board, National Research Foundation, and the Financia l Sector 
Conduct Authority.  
3.73.   The major piece of legislation on competition remains the Competition Act,  1998, most 
recently amended in 2019. The Act covers economic activities in South  Africa, as well as those 
overseas with an effect in the country. It regu lates various anti -competitive behaviours including 
restrictive practices and abuse of dominant positions (firms with a market share of 35% and above), 
establishes a notification and prior approval procedure for certain mergers and acquisitions, and 
 
118 WTO documents G/SPS/N/ZAF/65, 12  November  2019; G/SPS/N/ZAF/68, 6  May 2020; and 
G/SPS/N/ZAF/73, 7  April 2021; and G/SPS/N/ZAF/77, 23  February  2022.  
119 DALRRD, Commodity Clearance Approvals . Viewed  at: 
http://www.old.dalrrd.gov.za/doc/Commodity% 20Clearance%20Approvals%20_GMO%20Act%2015%201997.
pdf.  
120 Government of South  Africa (2021), Public Notice: South  Africa's Regulatory Approach for New 
Breeding Techniques , 27 October.  
121 The authorities state that the CCSA  has signed MoUs with Auditor General; B -BBEE Commission; 
Council for Medical Schemes; Department of Agriculture, Forestry and Fisheries; Independent Communications 
Authority; Information Regulator; ITAC; Media Development and Diversity Agency; National Ag ricultural 
Marketing Council; National Liquor Authority; National Consumer Commission; National Empowerment Fund; 
National Energy Regulator; National Gambling Board; Ports Regulator; Bureau of Standards; Council for the 
Architectural Profession; Governing Body Foundation; National Association for Specialised Education; National 
Association of School Governing Bodies; and Federation of Governing Bodies.  WT/TPR/S/ 447 • South Africa  
 
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  impose s penalties for breaching the law. In accordance with Section  10 of the Competition Act, the 
CCSA may grant exemptions to firms from complying with certain provisions of the Act on the 
following grounds: export promotion; assisting SMEs or firms controlled  or owned by historically 
disadvantaged persons; stopping the decline of an industry or protecting the stability of any industry; 
and promoting employment or industry expansion.  
3.74.   Amendments to the Act are mainly related to small, medium, and micro -sized ent erprises 
(SMMEs) and historically disadvantaged persons (HDPs), including the prohibition of dominant firms 
from imposing unfair prices, the restrictions on price discrimination, the additional consideration of 
mergers, the expansion of the market inquirie s provision to include the impact of the adverse effect 
on competition on SMMEs and HDPs. Maximum penalties for repeat offenders of the Act were 
increased, and the "yellow card" warning was removed for certain infringements; thus first -time 
offenders bec ame susceptible to administrative penalties. The Amendment Act also imposes reverse 
responsibilities such as requiring dominant firms to show in the case of a prima facie price 
discrimination, that the differential pricing does not impede effective participa tion of SMMEs and 
HDPs. Regarding the acquisition of a South  African business by a foreign firm, the merger may be 
blocked by the Government if it is considered to have an adverse effect on national security interests 
(Section  2.4). 
3.75.   The Competition Act req uires the mandatory notification of all mergers above certain 
monetary thresholds specified by the CCSA122, prior to the implementation of such mergers. On 
2 April 2019, the CCSA issued its "Guidelines for the determination of penalties for failure to notif y 
mergers", which aim to further encourage merger notifications. According to an OECD report, in 
2021, the CCSA received 241  merger notifications and, overall, 281  merger cases were finalized. Of 
the cases finalized, 60  were approved subject to conditions,  and 217  were approved without 
conditions. Of the remaining four cases, two were prohibited and two were abandoned by the 
parties.123 CCSA's Annual Report stated that, in FY2021/22, 295  mergers were notified, out of which 
the CCSA recommended and/or imposed  conditions on 74  merger cases. According to the CCSA's 
annual report, intervention in mergers resulted in a net saving of 1,618  jobs.124 
3.76.   Since 2014, the CCSA has initiated the following market inquiries: data market; private 
healthcare market; liquefied petroleum gas (LPG) market; public passenger transport market; and 
retail market. Through these inquiries, the CCSA found features or a com bination of features of these 
sectors that may prevent, distort, or restrict competition.  
3.77.   The CCSA also monitors concentration levels in certain "priority sectors": information and 
communication technologies; energy; financial services; food and agro -processing; infrastructure 
and construction; intermediate industrial products; mining; pharmaceuticals; and transport. The 
average market share of dominant firms in these sectors was identified by the CCSA at around 
52.5%.125 In addition, the CCSA also uses "da wn raids" as a tool to gather evidence of 
anti-competitive conduct by businesses in South  Africa.126 
3.78.   The CCSA is involved in international frameworks on competition policy such as the 
International Competition Network (ICN), the Competition Committee of the  OECD, and UNCTAD, 
and it participates in the collaborative framework between SACU and SADC members' national 
competition authorities.127 The CCSA also chairs the African Competition Forum (ACF), a network of 
African national and multinational competition a uthorities, and has been contributing towards the 
development of the AfCFTA.  
 
122 CCSA, When Must the Competition Commission Be Notified of a Merger?  Viewed  at: 
https://www.compcom.co.za/merger -thresholds/ .  
123 OECD (2022), Annual Report on Competition Policy Developments in South  Africa – 2021. 
124 CCSA (2022), Annual Report 2021 -22. Viewed  at: 
https://www.compcom.co.za/wp -content/uploads/2022/10/CC_Annual -Report -2021_22_Proof16_signed.pdf .  
125 Baker Mackenzie (2019), An Overview of Competition and Anti -Trust Regulations in Africa . 
126 If the competition authority suspects that an infringement of competition law has occurred, it may 
carry out unannounced insp ections ("dawn raids") at the premises of companies suspected of involvement 
(and, in some circumstances, also at the premises of their customers and/or competitors).  
127 SADC members signed a Declaration on Regional Cooperation in Competition and Consumer P olicies 
in September  2009. WT/TPR/S/ 447 • South Africa  
 
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  3.3.4.2   Price control s 
3.79.   Prices of public utilities, such as electricity and water, as well as reserved postal services,  and 
fuel, are regulated.  
3.80.   The CCSA has initiated investigations on p rice transmission and margins in the value chains 
of the major basic food items.128 It has monitor ed the prices of essential foods since the onset of 
the COVID -19 pandemic, and issues its "Essential Food Price Monitoring Reports" on a quarterly 
basis.129 The CCSA stated that it would continue to monitor food prices and probe essential food 
price increases that appear to be abnormal or excessive, as food price inflation affects all consumers 
and in particular the poorest households.130 
3.3.5   State trading, state -owne d enterprises, and privatization  
3.81.   South  Africa notified the WTO in 2018 that it did not maintain any state trading enterprises 
pursuant to the provisions of Article  XVII:4(a) of the GATT  1994 and Paragraph  1 of the 
Understanding on the Interpretation of Ar ticle XVII.131 
3.82.   State -owned enterprises continue play a significant role in South  Africa's economy, 
particularly in the backbone sectors of energy, transport services, and communications services , 
which are crucial to the well -functioning of the rest of the economy. As such, underinvestment in 
infrastructure, mismanagement , and the resultant high levels of debt accrued by some of these 
enterprises have had negative implications for other economic activities.  
3.83.   Awareness of governance concerns about the manageme nt of SOEs has led the Judicial 
Commission of Inquiry into Allegations of State Capture, Corruption and Fraud  (see Section 3.3.6)  
to, inter alia, recommend the establishment of a standing Appointment and Oversight Committee 
for Board and Executive Appointments for State -Owned Enterprises, as well strengthening the 
auditing of SOEs. No  information was available on measures taken to implement the Com mittee's 
recommendations.  
3.84.   Most major public entities fully or partially owned by the Central Government that operate on 
a commercial basis are listed in Schedule  2 to the Public Finance Management Act132 (Table  3.3). 
3.85.   Some developments since 2014 have included privatization of 51% of the Government's 
shares in South  African Airways (Section  4.4.3) and the separation of Postbank in  2019 from being  
a division of South  Africa n Post Office to becoming its subsidi ary. Full information on privatizatio n 
developments over the review period was not available.  
Table  3.3 State -owned enterprises  
SOE Activity  Share owned 
by State (%)  Ministry responsible for 
oversight  
Air Traffic and Navigation 
Services Company  Air transport control  .. .. 
Airport Company 
South  Africa  Airport ownership and 
management  74.6 .. 
South  African Express  Air transport services  100 Department of Public 
Enterprises  (DPE) 
South  African Airways  Air transport services  49  DPE 
Passenger Rail Agency of 
South  Africa  Rail and certain bus transport 
services  100 Department of Transport  
Alexkor  Alluvial diamond mining  100 DPE 
 
128 CCSA (2022), Essential Food Price Monitoring Report , August.  Viewed  at: 
https://www.compcom.co.za/wp -content/uploads/2022/08/EFPM -Repor t_Aug -2022.pdf .  
129 CCSA (2023), Essential Food Price Monitoring Report , March. Viewed  at: 
https://www.compcom.co.za/wp -content/up loads/2023/03/EFPM -Report_Mar -2023.pdf .  
130 CCSA (2022), Essential Food Price Monitoring Report , August.   
131 WTO document G/STR/N/17/ZAF, 11  September  2018.  
132 Public Finance Management Act. Viewed  at: https://www.treasury.gov.za/legislation/pfma/act.pdf .  WT/TPR/S/ 447 • South Africa  
 
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  SOE Activity  Share owned 
by State (%)  Ministry responsible for 
oversight  
Central Energy Funda  Energy  100 Department of Mineral 
Resources and Energy  
Electricity Distribution 
Industry Holdings  Electricity  .. .. 
Eskom  Electricity generation, 
transmission , and distribution  100 DPE 
Pebble Bed Modular 
Reactor  Nuclear power generationb 64 .. 
Petroleum, Oil and Gas 
Corporation of 
South  Africa (PetroSA)  Hydrocarbons provider  .. .. 
South  African Nuclear 
Energy Corporation  Development, use , and 
management of nuclear 
technology  100 Department of Mineral 
Resources and Energy  
Land and Agricultural 
Development Bank of 
South  Africa (Land Bank)  Financial services for farmers  100 .. 
National Housing Finance 
Corporation (NHFC)  Development finance for 
affordable housing for low - to 
middle -income households  .. .. 
Public Investment 
Corporation (PIC)  Investment management  100 National Treasury  
Broadband Infrastructure 
Company  Communications infrastructure  .. .. 
South  African 
Broadcasting Corporation  Broadcasting  .. .. 
South  African Post Office  Postal  100 Department of 
Communications and Digital 
Technologies  (DCDT)  
Telekom SA  Telecom  50.7c DCDT and PIC  
Other     
Armaments Corporation of 
South  Africa Ltd.  Armament procurement  100 .. 
Denel  Defen ce-related manufacturing  100 DPE 
Industrial Development 
Corporation of 
South  Africa (IDC)  Industrial development 
through company 
shareholdings  .. .. 
South  African Forestry 
Company Ltd. (SAFCOL)  Forestry  100 .. 
Independent 
Development Trust  Social infrastructure 
programmes  100 Department of Public Works  
.. Not available.  
a The Central Energy Fund is responsible for five subsidiaries: National Oil Company, Petroleum 
Agency of South  Africa; South  African Gas Development Company; African Exploration Mining and 
Financing Corporation, and the Strategic Fuel Fund.  
b The Pebble Bed Modular Reactor is a public -private partnership, with government ownership shares 
held by Eskom and the Industrial Development Corporation of South  Africa (IDC). 
c The Government owns 39% of the Telekom SA's shares and a further 10.9% are he ld by the PIC, 
which is wholly  owned by the Government.  
Source:  WTO document WT/TPR/S/324/Rev.1, 5  February  2016; Airports Company South  Africa  (ACSA ), 
Strategic Direction . Viewed  at: https://www.airports.co.za/business/investor -relations ; National 
Government of South  Africa , Central Energy Fund SOC Ltd . Viewed  at: 
https://nationalgovernment.co.za/units/view/81/central -energy -fund-soc-ltd-cef; Government of 
South  Africa , State -Owned Enterpris es and Other Public Institutions . Viewed  at: 
https://www.gov.za/about -government/contact -directory/soe -s; Department of Public Enterprises , 
SOCs in  the DPE  Portfolio . Viewed  at: https://dpe.gov.za/state -owned -companies/ ; and information 
provided by the authorities.  
3.86.   As indicated in the previous Review, the D PE reports directly to Cabinet on the SOEs falling 
under its jurisdiction (Table  3.3). Cabinet in turn reports to Parliament. The oversight of the  
remaining SOEs is dispersed across several line ministries.  WT/TPR/S/ 447 • South Africa  
 
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  3.3.6   Government procurement  
3.87.   The public procurement sys tem has not seen any significant changes since 2014.133 The major 
legislation remains the State Tender Act (No.  86 of 1968), the Public Finance Management Act (No.  1 
of 1999), and the Promotion of Administrative Justice Act  (No. 3 of 2000). Public procureme nt rules 
apply to commercial contracts concluded by state organs including SOEs for their acquisition of goods 
and services, and the disposal and letting of state assets. Foreign firms can only bid through a local 
agent.  
3.88.   According to an IMF report, public procurement spending was 15% of GDP in FY2021/22.134 
The public procurement system remains largely decentralized, as government departments or public 
entities determine and regulate their own procurement systems. The public sector supply chain 
management (S CM) system (implemented in 2003) aims to ensure uniformity in bidding, contract 
documentation, and procedure standards. Competitive bidding is the most used procuring method, 
while price quotations or the limited bidding process may be adopted.  
3.89.   The regime provides for preferences to domestic suppliers .135 The National Industrial 
Participation (NIP) programme requires that suppliers of goods and services to the Government, 
with an import content equal or exceeding USD  10 million or equivalent, must participat e in domestic 
economic activity. This obligation requires the seller/supplier to engage in commercial or industrial 
activity equal to or exceeding 30% of the import content of total goods or services purchased under 
the government tender.136 
3.90.   Awareness of corruption cases137 in public procurement led the Government to set up a 
Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud  in 2018.138 
Considering that the public procurement system is the "primary site for the redirection of state 
resources", the Commission made a number of recommendations to the Government on reforms to 
prevent future occurrences of corruption in public procurement, by, inter alia, reducing the 
fragmentation of the procurement system, and e nhancing the transparency of the system.139 Several 
proposals are reflected in the draft Public Procurement Bill, which was expected to be submitted to 
Parliament by March  2023.140 
3.91.   South  Africa is neither a signatory nor an observer to the plurilateral WTO  Agreement on 
Government Procurement.  
3.3.7   Intellectual property rights  
3.3.7.1   Overview  
3.92.   In 2022, South  Africa was ranked 60th among the 132  economies featured in WIPO's Global 
Innovation Index with innovation performance that exceeds expectations for its level of 
devel opment. It was ranked 14th among the 36  upper -middle -income countries included in the 
 
133 WTO document WT/TPR/S/324/Rev.1, 5  February  2016.  
134 IMF (2023), Public Procurement in South  Africa: Issues and Reform Options , SIP/2023/041. 
Viewed  at: https://www.imf.org/en/Publications/selected -issues -papers/Issues/2023/06/26/Public -
Procurement -in-South -Africa -Issues -and-Reform -Options -535223 .  
135 WTO document WT/TPR/S/324/Rev.1, 5  February  2016.  
136 DTIC, NIP FAQs. Viewed  at: http://www.thedtic.gov.za/sectors -and-services -2/industrial -
development/nip -
faqs/#:~:text=The%20National%20Indust rial%20Participation%20(NIP,any%20or%20a%20combination%20
of.  
137 OECD (2022), Economic Surveys: South  Africa 2022, OECD Publishing, Paris. Viewed  at: 
https://doi.org/10.17 87/d6a7301d -en.  
138 State of the House (2022), State Capture Commission Response . Viewed  at: 
https://www.stateo fthenation.gov.za/assets/downloads/State%20Capture%20Commission%20Response.pdf .  
139 State of the House (2022), State Capture Commission Response , p.16. 
140 State of the House (2022), State Capture Commission Response . WT/TPR/S/ 447 • South Africa  
 
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  analysis, with high relative rankings for knowledge and technology outputs and creative outputs. It 
was ranked 2nd among the 27  sub-Saharan African economies covered by t he index.141 
3.93.   South  Africa is a net importer of intellectual property (IP) . Exports of IP royalties and licensing 
fees were relatively stable between 2014 and 2021, whereas imports have fluctuated, peaking 
in 2017 (Chart  3.1). 
Chart  3.1 Charges for the use of intellectual property r ights, 2014 -21 
(USD million)  
 
Source:  IMF data. Viewed  at: https://data.imf.org/ . 
3.94.   In 2016, South  Africa released its Intellectual Property Consultative Framework142, which lays 
out a two -phase approach to formulating a national policy on IP. It also established an 
Inter-Ministerial Committee on Intell ectual Property (IMCIP) to provide a coordinated approach to 
IP policy formulation as well as consistency in South  Africa's participation in multilateral IP forums.143 
The national Intellectual Property Policy of South  Africa ( IP Policy) aims to, inter alia, promote a 
holistic, balanced , and coordinated approach to IP and help the Government to transition 
South  Africa from a natural resources -based to a knowledge -based economy.144 
3.95.   Phase  I of the IP  Policy was released in 2018 and focused on patents and public  health and 
international IP cooperation.145 Most of its recommendations concern reforms to patent legislation 
and processe s. Other recommendations relate to clarifying the remit and scope of the intersection 
between competition law and IP; South  Africa's a pproach to international and regional cooperation ; 
promoting knowledge awareness about IP among South  Africans; and creating a system to protect 
 
141 WIPO Global Innovation Index 2022. Viewed at: 
https://www.wipo.int/global_innovation_index/en/2022/#:~:text=Which%20are%20the%20most%20innovati
ve,United%20Kingdom%20and%20the%20Netherlands.  
142 The Intellectual Property Consultative Framework replaced the D raft National Policy on Intellectual 
Property of 2013. Companies and Intellectual Property Commission , Submission by South  Africa: Exceptions 
and Limitations . Viewed  at: 
https://www.wipo.int/export/sites/www/scp/en/meetings/session_27/3rdparty_comments/south_africa.pdf . 
143 The Inter -Ministerial Committee on Intellectual Property brings together the ministries responsible 
for trade and industr y; health; economic development; international relations and cooperation; science and 
technology; communications; telecommunications and postal services; higher education and training; 
agriculture, forestry , and fisheries; art and culture; energy; and envi ronmental affairs.  
144 Intellectual Property Policy of the Republic of South  Africa , Phase  I. Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201808/ippolicy2018 -phasei.pdf . 
145 Intellectual Property Policy of the R epublic of South  Africa , Phase  I. Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201808/ippolicy2018 -phasei.pdf . 
136.8 126.1 139.3 157.7182.5150.8126.4 135.31,732.1
1,641.11,831.21,883.4
1,540.1
1,356.2
1,197.51,453.0
02004006008001,0001,2001,4001,6001,8002,000
2014 2015 2016 2017 2018 2019 2020 2021Exports ImportsChart 3. [ZAF] Charges for the use of intellectual property rights, 2014 -21 
(USD million)
Source: IMF data. Viewed at: https://data.imf.org/. WT/TPR/S/ 447 • South Africa  
 
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  traditional knowledge.  Phase  II of the IP  Policy will be focused on meeting the medium -term 
development goals a nd needs of South  Africa once in -depth studies have been completed.  
3.3.7.2   International context  
3.96.   South  Africa is party to a handful of WIPO -administered treaties.146 South  Africa intends to 
accede to the Hague Agreement, the Madrid Protocol,  the Beijing Treaty  and the Marrakesh Treaty 
soon. As indicated in the IP Policy, the IMCIP is charged with analysing the WIPO treaties to which 
South  Africa is not currently a party with a view to seeing whether they could benefit the country.  
3.97.   Over the review period, two R TAs containing IP provisions entered into force : the EPA between 
the United  Kingdom , SACU , and Mozambique147, and the EPA between the European  Union  and SADC 
(Main Report, Section  2).148 Both contain provisions on cooperation, information sharing, accession 
to IP  conventions , and enforcement of protection. Protocol  3 to the respective RTAs contain 
provisions on geographical indications and trade in wines and spirits. These apply to South  Africa 
and the United  Kingdom  under the SACUM -UK EPA and to South  Africa  and the EU member States 
under the SADC -EU EPA. Annex  I to the respective protocols lists the GIs protected by each party. 
For South  Africa, under both agreements, protected GIs include several wines, Karoo meat, Rooibos, 
and Honeybush. Both agreements es tablish a Special Committee on Geographical Indications and 
Trade in Wines and Spirits to monitor the development of the respective protocols and to facilitate 
cooperation and information exchange.  
3.98.   In 2016, South  Africa ratified the Protocol Amending the T RIPS Agreement. South  Africa was 
also active in the negotiations that culminated in the adoption of the Ministerial Decision on the 
TRIPS  Agreement, on 17  June 2022.  
3.3.7.3   Domestic IP system  
3.99.   South  Africa's IP  regime continues to be largely administered by the Co mpanies and 
Intellectual Property Commission (CIPC). Key developments over the review period included the 
entry into force of the Protection, Promotion, Development and Management of Indigenous 
Knowledge Act (Act No.  6 of 2019)149, which is being implemented by the Department of Science 
and Innovation, and the 2015 Bioprospecting, Access, and Benefit -Sharing Amendments 
Regulations. Additionally, South  Africa's first GI register has been created (Section  3.3.5.3.4) and 
steps are being taken to autom ate the CIPC's IP processes through the Intellectual Property 
Automated System  (IPAS).  
3.3.7.3.1   Copyright and related rights  
3.100.   There were no changes to the laws and implementing regulations governing copyright and 
related rights over the review period. These are the Copyright Act and its implementing Regulations, 
the Performers' Protection Act, and the Registration of Copyright in Cinematographic Films Act. The 
key features of these Acts are described in the previous Review.150 A Copyright Amendment Bill and 
a Performe rs' Protection Amendment Bill were introduced to the National Assembly in  2017 and 
2016, respectively.151 As of mid -2023, the two Bills were before the National Council of Provinces.  
 
146 South  Africa is party to the Berne Convention for the Protection of Literary and Artistic Works; the 
Paris Convention for the Protection of Industrial Property; the WIPO Convention; the Budapest Treaty on the 
International Recognition of the Depos it of Microorganisms for the Purposes of Patent Procedure; and the 
Patent Cooperation Treaty.  
147 Economic Partnership Agreement between the Southern African Customs Union Member States and 
Mozambique and the United  Kingdom of Great Britain and Northern Irel and. Viewed  at: 
https://www.sacu.int/docs/agreements/2021/SACU -Mozambique -UK-EPA-EN.pdf . 
148 EPA between the EU and its Member States an d the SADC EPA States. Viewed  at: https://eur -
lex.europa.eu/legal -content/EN/TXT/PDF/?uri=OJ:L:2016:250:FULL&from=EN . 
149 Protection, Promotion, Development and Management of Indigenous Knowledge Act (Act No.  6 of 
2019). Viewed  at: https://www.wipo.int/wipolex/en/members/profile/ZA . 
150 WTO document WT/TPR/S/324/Rev.1, 5  February  2016, Table  3.7. 
151 Performers' Protection Amendment Bill. Viewed  at: https://static.pmg.org.za/B24B -
2016_Performers_Protection.pdf.  WT/TPR/S/ 447 • South Africa  
 
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  3.101.   South  Africa has several collective management organizations  (CMOs) operat ing in the areas 
of music; publishing, print and visual arts; and audio -visual.152 As indicated by the authorities, the 
CIPC currently regulates only the collective management of rights in sound recordings and performs 
an audit on an annual basis on how roy alties have been distributed to the beneficiaries. Other rights 
remain unregulated. It was noted that the two above -mentioned Bills are aimed at regulating all 
CMOs, inter alia, given that non -payment of royalties is of concern.153 The Copyright Tribunal's remit 
with respect to CMOs is limited to disputes regarding royalty tariff setting.  
3.102.   South  Africa does not impose a levy on devices/bank media that could be used to copy 
protected materials.  
3.3.7.3.2   Trademarks  
3.103.   There have been no changes to  the laws and implementing regulations governing trademarks 
(Trade Marks Act and Trade Mark Regulations, Merchandise Marks Act, and Liquor Products Act). 
The key features of these Acts are described in the previous Review.154 Trademark applications 
remained  relatively steady over the review period, and are dominated by applications from residents 
(Table  3.7). 
Table 3.4 Applications for trademarks and trademarks registered, 2014 -21 
 2014  2015  2016  2017  2018  2019  2020  2021  
Trademark applications  
Resident  20,475  21,594  22,676  22,381  22,542  21,583  22,104  25,786  
Non-resident  14,943  15,326  15,112  15,337  15,820  15,788  14,219  14,077  
Total 35,418  36,920  37,788  37,718  38,362  37,371  36,323  39,863  
Abroad  11,946  16,431  13,328  14,088  11,489  13,589  13,219  11,032  
Trademark  registrations  
Resident  17,019  14,547  6,139  8,549  16,745  16,712  12,022  10,162  
Non-resident  14,759  12,659  5,142  5,727  15,247  14,049  10,873  6,712  
Total 31,778  27,206  11,281  14,276  31,992  30,761  22,895  16,874  
Abroad  10,336  10,943  12,213  13,168  10,618  12,017  10,643  9,895  
Source:  WIPO, Statistical Country Profiles . 
3.3.7.3.3   Geographical indications  
3.104.   There were no changes to laws governing GIs over the review period (Trade Marks Act, 
Merchandise Marks Act, and Liquor Products Act). Under the Trade Marks Act, GIs can be registered 
as collective or certification marks.  
3.105.   In 2019, a first register and registration process for GIs in South  Africa was operationalized 
through regulations issue d under the Agricultural Products Standards Act.155 This enables 
registration of local and foreign GIs as GIs in South  Africa and incorporat es an opposition procedure. 
No information was available on whether any products have been registered under the South  African 
GI Registry.  
 
152 These CMOs appear to be the South  African Music Rights Organization; the South  African Recording 
Rights Association Limited; the National Organisation of Reproduction Rights in Music; the Composers, Authors 
and Publishers Association; the Dramatic, Artist ic and Literary Rights Organization; Christian Copyright 
Licensing International; Motion Picture Licensing Company; Association of Independent Record Companies of 
South  Africa; and Recording Industry of South  Africa's Audio Visual.  
153 PMG (2018), Copyright  Bill Subcommittee: Regulation of Collecting Societies . Viewed  at: 
https://pmg.org.za/committee -meeting/26093/ . 
154 WTO document WT/TPR/S/324/Rev.1, 5  February  2016,  Table  3.7. 
155 Regulations Relating to Protection of Geographical Indications Used on Agricultural Products Intended 
for Sale in the Republic of South  Africa (No.  R. 447/2019). Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201903/42324rg10925gon447.pdf . The proposed 
regulations were notified to the WTO  TBT Committee in  2016 (WTO document G/TBT/N/ZAF/214, 
16 December  2016).  WT/TPR/S/ 447 • South Africa  
 
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  3.3.7.3.4   Industrial designs  
3.106.   There were no changes to laws and regulations governing industrial designs over the review 
period (Designs Act (Act No.  195 of 1993, as last amended in  2013156)) and Designs 
Regulations,  1999. The main features of the Act are described in the previous Review.157 Industrial 
design applications have been driven by applications from non -residents and from abroad, and they 
peaked in  2016. Industrial design registrations fluctuated over this period, showing no  clear trend 
(Table  3.8). Some design registration processes are still done manually, which has led to delays in 
registration.158 
Table  3.5 Industrial design applications and registrations, 2014 -21 
 2014  2015  2016  2017  2018  2019  2020  2021  
Applications  
Resident  772 723 1,087  1,012  977 976 970 728 
Non-resident  1,201  1,237  1,107  1,114  966 908 738 833 
Total 1,973  1,960  2,194  2,126  1,943  1,884  1,708  1,561  
Abroad  1,767  1,403  2,030  2,710  1,833  2,346  1,809  886 
Registrations  
Resident  343 371 411 686 687 908 694 861 
Non-resident  549 645 719 975 833 976 801 807 
Total 892 1,016  1,130  1,661  1,520  1,884  1,495  1,668  
Abroad  2,126  1,321  1,995  2,656  1,698  2,151  1,824  801 
Source:  WIPO, Statistical Country Profiles . 
3.3.7.3.5   Patents  
3.107.   There were no changes to the Patents Act and the Patent Regulations over the review period. 
The key features of these Acts are described in the previous Review.159 Over the period 2014 -21, 
patent applications were drive n by non -resident applications. Total applications steadily declined 
from 201 7 to 2020 and then sharply increased in  2021 (Table  3.9). The CIPC has suggested that 
this may have been due to the economic recovery after relaxation of COVID -19 restrictions.160 The 
number of patents in force grew steadily over the review period, from 55,031 in  2014 to 
85,431  in 2021.161 
Table  3.6 Applications for patents and patents registered , 2014 -21 
 2014  2015  2016  2017  2018  2019  2020  2021  
Applications  
Resident  802 889 704 728 657 567 542 1,804  
Non-resident  6,750  6,608  6,506  6,816  6,258  6,347  6,146  9,156  
Total 7,552  7,497  7,210  7,544  6,915  6,914  6,688  10,960  
Abroad  1,520  1,197  1,316  1,461  1,204  950 915 947 
Patents registered  
Resident  445 453 403 595 451 694 313 565 
Non-resident  4,620  4,046  3,852  4,940  4,295  5,468  3,153  5,542  
Total 5,065  4,499  4,255  5,535  4,746  6,162  3,466  6,107  
Abroad  890 773 674 835 992 861 710 748 
Source:  WIPO, Statistical Country Profiles . 
3.108.   Phase  I of the IP  Policy largely focuses on the shortcomings of the existing legal and 
regulatory framework with respect to IP and public health and makes several recommendations. 
These recommendations include (i)  progressively replacing the existing "depo sitory system" for 
patents with a "substantive search and examination" system in order to give greater legal certainty 
 
156 The Designs Act was last amended by the Intellectual Property Amendment Act (Act No.  28 of 2013), 
which provides for protection mechanisms for indigenous knowledge as a form of IP in South  Africa.  
157 WTO document WT/TPR/S/324/Rev.1, 5  Februar y 2016, Table  3.7. 
158 DTIC (2022), Presentation to the Portfolio Committee on Trade, Industry, and Competition . 
Viewed  at: http://www.thedtic.gov.za/wp -content/ uploads/PCTrade -CIPC-AR2021 -22-Q1-2022-23.pdf . 
159 WTO document WT/TPR/S/324/Rev.1, 5  February  2016, Table  3.7. 
160 CIPC, Annual Report 2021/2022 . Viewed  at: https://www.cipc.co.za/wp -
content/uploads/2022/10/30 -September -2022-CIPC-Annual -Report -Final_2022.pdf . 
161 WIPO, Statistical Country Profiles . WT/TPR/S/ 447 • South Africa  
 
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  to patent holders and to ensure the system is effective in promoting innovation162; (ii) eventually 
enacting opposition proceedings into the Patent Law both prior to and after the grant of a patent, 
while in the interim it is recommended that the law recognizes a third party observation system and 
for existing provisions in administrative law to be used in lieu of post -grant oppositions; 
(iii) developing patentability criteria to be incorporated into the Patents Act to promote genuine 
innovation; (iv)  expanding disclosure requirements in the Patents Act to require applicants to provide 
information regarding the status of sim ilar and related applications filed in other jurisdictions; 
(v) allowing parallel importation in a controlled manner pursuant to consultations with respective 
stakeholders, including through clarification of enabling provisions in the Patents Act, as well as the 
incorporation of provisions in sector -specific laws other than those dealing with medicines if 
necessary163; (vi)  developing exceptions for research and experimental activities with broader 
application than publicly funded research; (vii)  encouraging  the use of voluntary licences; and 
(viii) putting in place a workable compulsory licensing system.164 Steps to implement Phase I of the 
IP Policy have included progressively replacing the existing depository system for patents with a 
substantive search and  examination system. Implementation of other recommendations are awaiting 
legislative reform.  
3.109.   As of March  2023, five applications for compulsory licences had been made, none of which 
were granted, and all applications were made before the review period. Th e difficulty in granting 
compulsory licences has been attributed to the fact that applications for compulsory licences are 
subject to a judicial process before the Commissioner of Patents. As such, litigation timeframes and 
expenses apply. Delays can also occur if the Commissioner's decision to grant a licence is appealed. 
Obstacles to government use of patented subject matter are linked to the prior negotiation 
requirements set out in Section  4 of the Patents Act, and the possibility of litigation proceedi ngs if 
the patentee disagrees with the conditions attached to the licence.165 
3.3.7.3.6   Plant varieties and genetic resources  
3.110.   Protection of plant varies is covered by the Plant Breeder's Rights Act (Act No.  15 of 1976, 
as last amended in 1996).  
3.3.7.4   Enforcement of intelle ctual property rights  
3.111.   South  Africa's latest notification of its Checklist of Issues on Enforcement was in 1998.166 As 
indicated by the authorities, over the review period, South  Africa prioritized enforcement of IP  rights 
by targeted collaboration, building  capacity, and training all law enforcement partners167, as well as 
through general education to the public. Multi -agency operations that focus on visible enforcement 
are part of the new strategic approach. With the support of WIPO, a pocket guide on Invest igating 
and Prosecuting IP Crime has been drafted, which is based on the TRIPS  Agreement.  
3.112.   The Counterfeit Goods Act (Act No.  37 of 1997 (as amended in  2001)) is the main piece of 
legislation on the criminalization of dealing in counterfeits and pirated goo ds.168 In addition, some 
provisions contained in the Trade Marks Act, the Copyright Act, and the Patents Act also provide for 
sanctions against the various IPR offences. Sanctions under the Counterfeit Goods Act remain 
unchanged.169 As indicated by the autho rities, there were 18  cases concluded under the Act in 
FY2021/22.  
 
162 The rationale for and expec ted benefits of introducing a substantive search and examination system 
for South  Africa are described in detail in the Policy.  
163 As indicated in the IP  Policy (Phase  I), while provisions allowing parallel imports of medicines are set 
out in Article  15C of  the Medicines and Related Substances Act 101, 1965, reportedly a narrow interpretation of 
Section  52 of the Patents Act could give rise to challenges should parallel importation be pursued.  
164 Intellectual Property Policy of the Republic of South  Africa, P hase I. Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201808/ippolicy2018 -phasei.pdf . 
165 IP Policy, Phase  I. 
166 WTO document IP/N/6/ZAF/1, 23  February  1998.  
167 The authorities indicated that around 500  officers from SARS, the South  African Police Service, and 
the prosecution service were trained in one year in four training workshops.  
168 Counter feit Goods Act. Viewed  at: https://www.gov.za/documents/counterfeit -goods -act. 
169 First-time offenders are punishable by a maximum fine of ZAR  5,000 per arti cle or item, or 
imprisonment for a maximum period of three years, or both depending on the circumstances and severity of 
the offence. Subsequent/repeat offenders are punishable by a maximum fine of ZAR  10,000 per article or item, WT/TPR/S/ 447 • South Africa  
 
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  3.113.   The SARS may seize and detain counterfeit goods imported into the country, either on its 
own initiative or upon application by the property right holder.  
 
or imprisonment for a maxi mum period of five years, or both depending on the circumstances and the severity 
of the offence.  WT/TPR/S/ 447 • South Africa  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, forestry, and fisheries  
4.1.1   Agriculture  
4.1.1.1   Overview  
4.1.  The contribution of agriculture, forestry , and fishing to gross value -added  was 3.2% in 2022 
(Table  1.1). South  Africa's agriculture sector is characterized by dualism; it has well -developed and 
well-resourced commercial farms on the one hand, and a large, smallholder (subsistence) sector on 
the other. In 2021, large farms generated around 67.7% of total farming revenues, medium -sized 
farms 7.1% , small farms 18.1%, and micro farms 7.1%.170 
4.2.  South  Africa continues to pursue its long -standing land reform objectives , which aim to address 
the injustices of the apartheid era , inter alia, by provid ing redress and equitable access to land and 
producer support to previously disadvantaged individuals. New principles for the country's Land 
Reform Programme were introduced in 2012 through the National Development Plan 
2030 (NDP 2030) (Section  2.2) and include "deracialization" of the rural economy as well as 
democratic and equitable land allocation (by gender, race, and class).  
4.3.  The Agri -BEE Charter was amended in 2017 and contains initiatives to advance access and 
participation of black people in the agriculture value chain.171 The Charter is implemente d under the 
2013 B -BBEE Amendment Act. Key amendments to the Charter include a sub -minimum and 
discounting principle to encourage agricultural enterprises to meet minimum targets set for 
empowerment indicators for ownership, skills development, and enterpr ise and supplier 
development.172 In addition, in 2022, a National Policy for Beneficiary Selection and Land Allocation 
was signed , which aims to allocate at least 50% of land acquired to women.  
4.4.  The fundamental challenges that agriculture faces are unfavoura ble production conditions in 
several regions caused by poor land quality, highly variable climatic conditions, and most importantly 
scarce water.173 Other challenges include lack of access to finance for smallholder farmers; rising 
input costs; lack of incl usion of previously disadvantaged black people in the export sector and in 
value chains, especially in processing firms; and infrastructure bottlenecks (road, rail, harbour, 
electricity).174 Over the medium term, policy uncertainty due to trade disruptions (including those 
related to the COVID -19 pandemic ) in foreign markets and non -tariff barriers , such as food safety 
or quality requirements , pose challenges to agricultural exports.175 
4.5.  South  Africa was a net exporter of agricultural products (WTO definition)  throughout the review 
period (Table  4.1). 
 
170 Information based on data provided by Stat istics South Africa's  Agriculture Survey 2021. Large farms 
are those with a turnover of over ZAR  30 million; mediu m-sized farms (ZAR  18 million to ZAR  30 million); 
small farms (ZAR  3 million to ZAR  18 million); and micro farms (ZAR  3 million and under). Reportedly, data 
are only collected on farms that pay value added tax.  
171 DTIC, B-BBEE Charters . Viewed  at: http://www.thedtic.gov.za/financial -and-non-financial -support/b -
bbee/b -bbee-charters . 
172 Enterprise and supplier development provisi ons target the empowerment of black -owned small, 
medium, and micro enterprises ( SMMEs ) that supply agricultural products and services.  
173 WTO document WT/TPR/S/324/Rev.1, 5  February  2016.  
174 Government Communication and Information System  (GCIS), South  Africa Yearbook: Agriculture  
(various editions,  2014/15 -2020/21). Viewed  at: https://www.gcis.gov.za/content/resourcecentre/sa -
info/yearbook . 
175 GCIS, South  Africa Yearbook: Agriculture  (2020/21). Viewed  at: 
https://www.gcis.gov.za/content/resourcecentre/sa -info/yearbook . WT/TPR/S/ 447 • South Africa  
 
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  Table  4.1 South  Africa's trade balance in agricultural products, 2014 -22 
(USD million)  
 2014  2015  2016  2017  2018  2019  2020  2021  2022  
Trade balance  3,336  2,769  2,539  3,286  3,943  3,526  4,306  5,066  5,548  
Exports  9,670  8,801  8,682  9,867  10,473  9,866  10,260  11,924  12,816  
% total exports  10.4 11.0 11.4 11.2 11.2 11.0 12.0 9.8 10.5 
Imports  6,334  6,032  6,322  6,581  6,530  6,340  5,954  6,858  7,267  
% total exports  6.3 7.1 8.4 7.9 7.0 7.2 8.6 7.3 6.5 
Note:  WTO  definition of agriculture: HS  Chapters  01-24 less fish and fishery products (HS 03, and 0508, 
0511.91, 1504.10, 1504.20, 1603 -1605 , and 2301.20), plus some selected products (HS  2905.43 -2905.45, 
3301, 3501 -3505, 3809.10, 3823, 3824.60, 4101 -4103, 4301, 5001 -5003, 5101 -5103, 5201 -5203, and 
5301 -5302).  
Source:  WTO Secretariat calculations, based on UN Comtrade data.  
4.6.  South  Africa is amon g the world's biggest exporters of citrus fruit, sugar , and wine. In 2022, 
the top four exports were maize (Chinese  Taipei, Japan , and Viet  Nam were the biggest importers); 
oranges (the Netherlands, China, and the United  Arab Emirates), grapes (the Netherl ands and the  
United  Kingdom), and wine (the United  Kingdom, Germany , and the United  States). Exports of 
maize have seen a steep increase since 2019. The top four imports were palm oil, wheat and meslin, 
rice, and spirits and liqueurs. Imports of palm oil a nd wheat and meslin have increased significantly 
in recent years, while imports of poultry products have seen a steep decline (Chart  4.1). 
Chart  4.1 Main traded agricultural products, 2014 -22 
(USD million)  
 
Note:  Apples (HS  080810); banana (HS  080390); bran of wheat (HS  230230); cake of soya beans 
(HS 230400); cane or beet sugar (HS  1701); fruit or nut juices (HS  2009); grapes (HS  080610); 
lemon and limes (HS  080550); maize (corn) (HS  100510, 100590); macadam ia nuts (HS  080261, 
080262); meat of poultry (HS  0207); oranges (HS  080510); palm oil (HS  151110, 151190); 
rice (HS 1006); spirits, liqueurs (HS  2208); sunflower -seed, safflower oil (HS  151211, 151219); 
tangerines, mandarins, clementines (HS  080520, 080521, 080522, 080529); wheat and 
meslin  (HS 1001); and wine (HS  2204) . 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
4.1.1.2   Institutional, legislative , and policy framework  
4.7.  In June  2019, the Department of Agriculture, Land Reform and Rura l Development  (DALRRD) 
was established from the merger of the Department of Agriculture, Forestry and Fisheries  (DAFF) 
and the Department of Rural Development and Land Reform  (DRDLR). A separate Department of 
Environment, Forestry and Fisheries  (DEFF) was also formed. Over the medium term, the DALRRD 
is to focus on providing redress and equitable access to land and on creating employment in the 
Maize (corn)
GrapesOranges
Wine
Apples
Tangerines, 
mandarins, 
clementines
Lemon and limes
Cane or beet sugar
Fruit or nut juices Macadamia nuts
02004006008001,0001,2001,400
2014 2015 2016 2017 2018 2019 2020 2021 2022Banana
Bran of wheatCake of soya 
beansCane or beet 
sugarMeat of 
poultryPalm oil
RiceWheat and 
meslin
Spirits, liqueurs
Sunflower -
seed, 
safflower oil
0100200300400500600700
2014 2015 2016 2017 2018 2019 2020 2021 2022Exports ImportsChart 4.  [ZAF -Agri] Main traded agricultural products, 2014 -22
(USD million)(USD million)
Source: WTO Secretariat calculations, based on UN Comtrade database.Note:Apples (HS 080810); banana (HS 080390); bran of wheat (HS 230230); cake of soya beans (HS 230400); cane or beat sugar (H S 1701); fruit or nut juices 
(HS 2009); grapes (HS 080610); lemon and limes (HS 080550); maize (corn) (HS 100510, 100590); macadamia nuts (HS 080261, 080262); meat of poultry (HS 
0207); oranges (HS 080510); palm oil (HS 151110, 151190); rice (HS 1006); spirits, liqueurs (HS 2208); sunflower -seed, safflower oil (HS 151211, 151219); 
tangerines, mandarins, clementines (HS 080520, 080521, 080522, 080529); wheat and meslin (HS 1001); wine (HS 2204) WT/TPR/S/ 447 • South Africa  
 
- 322 - 
 
  agricultural sector, enhancing agricultural production and food security, developing the agricultural 
value chain through greater market access, and promoting an inclusive rural economy.176  
4.8.  The state -owned Land and Agricultural Development Bank of South  Africa (Land  Bank) 
speciali zes in providing loans to the commercial farming sector and agri -businesses , as well as 
helping historically disadvantaged persons participate in agricultural activities. Over the review 
period , it was obliged to suspend loan operations due to a default on debt payments to its lenders. 
Lending resumed in late 2022, with the launch of a joint s cheme between the Land  Bank and the 
DALRRD to offer ZAR  1.95 billion in loans through a blended finance scheme up to end -2025.177 The 
aim of this scheme is to facilitate meaningful participation of black producers and majority 
black-owned enterprises owning  and controlling the agricultural value chains. It has a sector focus 
that is in line with the Agriculture and Agro -processing Master Plan and Oceans Economy Master 
Plan (see below and Section  4.1.3).178 The Government does not provide agricultural insuranc e. 
4.9.  The main law on agriculture is the Marketing of Agricultural Products Act (Act No.  47 of 1996, 
most recently amended in 2001).179 It provides for regulatory measures to intervene in the 
marketing of agricultural products and establishes the National Agri cultural Marketing Council , which 
aims, inter alia, to improve market access in foreign markets and promote agricultural exports.180 
Other agriculture -related laws are listed in South  Africa's previous Review.181 
4.10.   South  Africa continues to implement the Natio nal Policy on Food and Nutrition Security , which 
was launched in 2013 and aims to boost food security and support subsistence farmers.182 
4.11.   Under the 2019 Re -Imagined Industrial Strategy (Section  2.2), three agriculture -related 
master plans were released in 2020, namely the Agriculture and Agro -processing Master Plan, which 
falls under the responsibility of the DALRRD, and the Sugar Master Plan and Poultry Master Plan , 
which fall under the responsibil ity of the Department of Trade Industry and Competition  (DTIC). 
4.12.   The Agriculture and Agro -processing Master Plan aims to expand production and food security 
through agricultural production schemes; strengthen South  Africa's participation in global value 
chains through commodity corridors; provide comprehensive post ‐settlement support, extension 
services, and farmer training; and facilitate the revitali zation of essential infrastructure and equitable 
access to critical factors of production. Information was n ot available on the policy tools/support 
measures that are being used to implement this plan.  
4.13.   The Sugar Industry Master Plan seeks to create diversified revenue streams for sugar 
producers and create new job opportunities. As part of the Master Plan, indus trial users and retailers 
agreed to give preference to local sugar production, by purchasing 80% of their sugar needs from 
South  African farms and millers during the first year and increasing  to 95% by 2023. 
4.14.   To address the "threat" of strong import competi tion to the local production of poultry183, the 
Government ( the DALRRD and the DTIC), together with key stakeholders in the industry, including 
poultry producers, farmers, processors, exporters, importers , and organi zed labour, developed the 
Poultry Master Plan. The Plan is expected to ensure that locally produced poultry products capture 
over time an increasingly larger proportion of the domestic market. Since  FY2020/21, chicken 
producers have committed to ZAR  1.5 billion of fresh investment in their own pr oduction facilities 
 
176 GCIS, South  Africa Yearbook: Agriculture  (2019/20). Viewed  at: 
https://www.gcis.gov.za/content/resourcecentre/sa -info/yearbook . 
177 Landbank , Blended  Finance . Viewed  at: https://landbank.co.za/Products -and-
Services/Pages/Blended -Finance.aspx . 
178 Targeted commodities are grains and oilseeds; fruits and nuts (citrus, deciduous, sub -tropical fruits , 
and nuts); and livestock (poultry, piggeries , and red meat)  
179 Marketing of Agricultural Products Act. Viewed  at: https://www.gov.za/documents/marketing -
agricultural -products -act. 
180 NAMC , The NAMC Profil e. Viewed  at: https://www.namc.co.za/about -us/profile/ . 
181 WTO document WT/TPR/S/324/Rev.1, 5  February  2016.  
182 The National Policy on Food and Nutrition Security for the Republic of South  Africa. Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201409/37915gon637.pdf . 
183 Reportedly,  imports of poultry entered South  African economy in large quantities in the years 
preceding 2019, displacing South  African poultry meat, especially in the lower price category. GCIS , 
South  Africa Yearbook: Agriculture  (2020/21).  WT/TPR/S/ 447 • South Africa  
 
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  within the next four years. As part of the investment drive, the industry and various government 
agencies will invest ZAR  1.7 billion in the establishment of 50  commercial -scale contract farms.184 
4.15.   Tariff protection to agriculture, huntin g, forestry , and fishing (ISIC classification) averaged 
3.7% in 2023, with tariffs ranging from zero to 44%. According to the WTO definition of agricultural 
products, the simple applied average tariff was 10.1%, with tariffs ranging from zero to 95% 
(Main  Report, Section  3, Table  A3.1). Tariff lines on agricultural products (WTO  definition) attracting 
rates of more than 50% include poultry products, certain cheeses, and pineapple (Main  Report, 
Section  3, Table  3.3). Several agricultural products are subject  to non -ad valorem  duties 
(Main  Report, Section  3, Table  3.1). 
4.16.   South  Africa administers tariff quotas for agricultural products within the framework of its 
WTO tariff quota commitments (Section  3.1.2) and under its RTAs  (Main Report, Section 3.3.3) .  
4.17.   As in dicated in the previous Review, levies apply to the export and/or production of the 
following products: citrus, cotton, certain dairy products, deciduous fruits, dried fruits, fynbos 
(protea), lucerne, mango, olive s, pecan nuts, potatoes, pork, poultry, re d meat, sorghum, table 
grapes, wine grapes, and winter cereals. Levies are collected at the first point of sale by the various 
agricultural associations to fund their activities; the rates are published on a regular basis in the 
Government Gazette. Under t he Marketing of Agricultural Products Act, guideline prices are 
established based on average market prices for all products to which levies are applicable. According 
to the authorities, these prices are for administrative purposes and to ensure the levy do es not 
exceed 5% of the actual market price. The guideline price is the average price at the first point of 
sale and has no impact on the market price.185 There were no changes over the review period in this 
regard.  
4.18.   South  Africa is overdue with regard to its domestic support notifications; the last notification 
covers the years 2011 to 2013.186 As reported by the OECD, support to agriculture in South  Africa 
over the period 2019 -21 was 2.6% of farm receipts, with market price support and payments based 
on input use accounting for the biggest shares of support provided to famers. The OECD considers 
that the level of price distortions is low and domestic prices align with world prices. Exceptions are 
sugar and wheat due to import tariffs. Most direct payments t ake the form of fuel tax refunds and 
investment subsidies provided to smallholder farmers.187 
4.19.   New support mechanisms introduced since 2014 include the launch of a ZAR  1 billion 
Agri-Industrial Fund in 2021 to help black producers and entrepreneurs to acquire or develop 
operations in prioritized value chains and the establishment of a COVID -19 Agricultural Disaster 
Support Fund with ZAR  1.2 billion for smallholder and communal farmers in distress.188 
4.20.   Other support schemes that were in pl ace prior to this Review period include (i)  the 
Comprehensive Agricultural Support Programme, which offers support services to previously 
disadvantaged landowners to help them in their farming activities; (ii)  mechani zation support; 
(iii) smallholder devel opment; and (iv)  loans provided through the Micro Finance Institution of 
South  Africa (Mafisa) and the Agri -BEE Fund, also to support previously disadvantaged farmers.189 
4.21.   As of December  2022, South  Africa had definitive anti -dumping duties in force on froze n 
bone-in chicken portions (from Brazil, Denmark, Germany, Ireland, the Netherlands, Poland, Spain, 
and the United  Kingdom), garlic (from China), pasta (from Egypt, Latvia, Lithuania, and Türkiye) , 
and chicken meat portions (from the United  States). Provis ional anti -dumping duties were applied 
in 2022 to frozen potato chips from Belgium, Germany, and the Netherlands.190 South  Africa notified 
the WTO that no agricultural special safeguards  (SSG) were invoked from 2016 to 2020.191 In the 
 
184 GCIS, South  Africa Yearb ook: Agriculture  (2020/21).  
185 WTO document WT/TPR/S/324/Rev.1, 5  February  2016.  
186 WTO document G/AG/N/ZAF/83, 26  February  2015.  
187 OECD (2022) Agricultural Policy Monitoring and Evaluation 2022: Reforming Agricultural Policies for 
Climate Change Mitigation . Viewed  at: https://www.oecd -ilibrary.org/agriculture -and-food/agricultural -policy -
monitoring -and-evaluation -2022_7f4 542bf -en. 
188 WTO document G/AG/GEN/180, 12  March  2021.  
189 DALRRD, Development Finance . Viewed  at: http://www.daf f.gov.za/index.php/core -business/food -
security -agrarian -reform/development -finance . 
190 WTO document G/ADP/N/377/ZAF, 14  April 2023.  
191 WTO documents G/AG/N/ZAF/97 -101, 10  May 2021.  WT/TPR/S/ 447 • South Africa  
 
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  context of this Review,  South  Africa confirmed that no SSGs have been applied since 2020. Bilateral 
safeguards have been used for poultry under the EPA with the E uropean  Union. 
4.1.2   Forestry  
4.22.   The Department of Forestry, Fisheries and the Environment  (DFFE) is mandated to give effect 
to the right of citizens to an environment that is not harmful to their health or well -being, and to 
have the environment protected for the benefit of present and future generations.192 The main law 
governing the sector is the National Forest Act, 1998 (Act No. 84 of 1998). The South  African 
Forestry Company is a state -owned enterprise operating in the forestry sector; it falls under the 
responsibility of the Department of Public Enterprises.  
4.23.   Forests cover over 38  million  ha (about 31.1%) of the land surface area. The forestry sector 
employed around 158,400  workers, about 1.3% of the workforce in 2020/21. Forestry provides 
livelihood support to 716,000  people of the rural population. About 80% of South  Africa's plantation 
forests are Forestry Stewardship Counc il (FSC®) -certified, indicating achievements in ensuring 
sustainable forest management.  193 According to the FAO, forestry exports ( including both timber 
and processed forestry products) were valued at USD  1,582  million in 2021 and imports at 
USD 1,071.  
4.24.   The forestry industry is one of South  Africa's strategic economic sectors under the Agricultural 
Policy Action Plan  (APAP) and the NDP 2030. Previously, DAFF was pursuing an annual afforestation 
target of 10,000  ha (net). However, the target has not been met due to various reasons that include 
challenges with acquisition of water use licences for afforestation and the need to conduct 
environm ental impact assessments since forestry classifies as a stream flow reduction activity in 
terms of environmental law. There were new efforts to review the target by the DFFE. The focus 
remains on encouraging cooperatives, simplifying and streamlining the r egulatory environment, 
providing training and extension, supporting the implementation of rural credit , and offering 
incentives for new entrants (especially those previously disadvantaged).  
4.25.   Under the Re -imagined Industrial Strategy, the DTIC issued a Maste r Plan for the Commercial 
Forestry Sector in South  Africa for 2020 -2025.194 Its target is to establish 151,000  ha of new 
plantations and bring 68,820  ha of DFFE -owned plantations back into production by 2026. 
4.1.3   Fisheries  
4.26.   The South  African coastline covers mor e than 3,000  km. These shores are particularly rich in 
biodiversity, with some 10,000  species of marine plants and animals (about 15% of global ocean 
species).195 South  Africa has one of the largest exclusive economic zones (EEZs) in the world.196 The 
value of the fisheries production sector is around ZAR  6 billion per annum and the sector directly 
employs some 27,000  people in the commercial sector (about 16,000  in the primary sector and 
11,000  in the secondary and tertiary sectors).197 
4.27.   According to the FAO, South  Africa produced 602,000  tonnes (live weight equivalent) of fish 
in 2020; of this, 6,000  tonnes were produced through aquaculture. While the marine catch is 
 
192 The DFFE was renamed on 1  April 2021, fr om the previous Department of Environment, Forestry and 
Fisheries (DEFF). In June  2019, the DFFE was established by incorporating the forestry and fisheries functions 
from the previous Department of Agriculture, Forestry and Fisheries into the Department o f Environmental 
Affairs.  
193 GCIS, South  Africa Yearbook: Forestry, Fisheries and the Environment  (2020/21).  
194 DTIC, 2020. Master Plan for the Commercial Forestry Sector in South  Africa 2020 -2025. 
195 GCIS, South  Africa Yearbook: Agriculture  (2014/15) and South  Africa Yearbook: Forestry, Fisheries 
and the Environment  (2020/21).  
196 Nairobi Convention  (2021), " South  Africa  Works to Maximize Economic Benefits from the Ocean 
While Maintaining Environmental Standards ", 10 August . Viewed  at: https://www.nairobiconvention.org/south -
africa -works -to-maximize -economic -benefits -from-the-ocean -while-maintaining -environ mental -standards/ . 
197 GCIS, South  Africa Yearbook: Forestry, Fisheries and the Environment  (2020/21) ; and  Government 
of South  Africa. Viewed  at: https://www.gov.za/about -
sa/fisheries#:~:text=In%20South%20Africa%2C%20the%20%EF%AC%81sheries,the%20basic%20needs%2
0of%20life . WT/TPR/S/ 447 • South Africa  
 
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  expected to decrease by around 13% by 2030, aquaculture production is projected to double.198 
Exports of fish products amounted to USD  655 million in 2022, representing 0.5% of total exports. 
The main export market is the European  Union , with other important markets being China; 
Hong Kong,  China ; Australia, and Mozambique. South  Africa imported USD  486 million of fish 
products in the same year (0.4% of total imports), mainly from Morocco and Thailand. According to 
the authorities, the main marine catch fish species exported are hake , sole, horse mackerel , kingklip , 
monk fish, pilchard , anchovy , tuna, abalone , rock lobsters , squid , and Patagonian toothfish. The main 
aquaculture fish species exported are tilapia, abalone, mussels, oysters, and catfish. Commercial 
exports of fish require a permit.199 The legal basis for this permit requirement is Section  13 of the 
Marine Living Resources Act (see below).  
4.28.   The DFFE has responsibility for the fisheries sector. The Marine Living Resources Act,  1998 
(Act No. 18 of 1998) and its implementing regulations provide for the conservation of the marine 
ecosystem, the long -term sustainable use of marine living resources , and the orderly access to 
exploitation.200 
4.29.   Fishing rights are allocated to individuals or companies for a period not exceeding 15  years 
under Section  18 of the Marine Living Resources Act as effected by the General Policy on the 
Allocation of Commercial Fishing Rights and by sector -specific policies for each fishery subsector. 
Annual scientific stock assessments of each fishery are conducted to ascertain the maximum 
sustainable yield and de termine an annual "total allowable catch"  (TAC) or a "total allowable 
effort"  (TAE) or a combination thereof. The TAC and/or TAE is apportioned to right  holders. 
Additionally, annual catch permits with catch limitations are issued. As indicated by the auth orities, 
South  Africa does not allow foreign vessels to fish in its EEZ ; however , they may enter the EEZ under 
specific circumstances (i.e.  for bunkering, transhipment after fishing on the High Seas, fuelling, 
landing, change of crew, force majeure , and re pairs).  
4.30.   In 2016, South  Africa acceded to the FAO Port State Measures Agreement  (PSMA), which 
seeks to stop IUU fishing and deny access to fishers attempting to unload illegal catch in its ports.201 
The authorities noted that all landed fish is monitored for IUU purposes, as well as to gather scientific 
data. They reported that during FY2021/22, more than ZAR  20 million of illegal catch was 
confiscated.  
4.31.   Under the 2012 Small -Scale Fisheries Policy, preferential access to long -term fishing rights is 
granted to small -scale fishing communities traditionally dependent on marine living resour ces for 
their livelihood.202 These rights had previously been oriented towards the export -driven, commercial 
fisheries sector, which was inaccessible to black people during apartheid. It provides a range of 
institutional management instruments and provides capacity -building , compliance monitoring , and 
enforcement mechanisms for small -scale fishers.  
4.32.   The 2013 National Aquaculture Policy Framework  (NAPF) provides for a framework for the 
establishment and development of the aquaculture industry.203 An Aquaculture  Development Bill has 
been drafted, which provides for an institutional framework for the aquaculture sector; the DFEE 
intends to submit the Bill to Parliament by the end of FY2023/24.204 
4.33.   A National Freshwater (Inland) Wild Capture Fisheries Policy was endo rsed by cabinet in 
August  2021. The policy is based on the three pillars of social, economic , and sustainable 
 
198 FAO (2022), The State of Wo rld Fisheries and Aquaculture: Towards Blue Transformation . Viewed  at: 
https://www.fao.org/3/cc0461en/cc0461en.pdf.  
199 Government of South  Africa , Export Fish on a Commercial Basis . Viewed  at: 
https://www.gov.za/services/export -permits/export -fish-commercial -basis . 
200 Marine Living Resources Act and Regulations. Viewed  at: 
https://www.ecolex.org/details/legislation/marine -living -resources -regulatio ns-lex-faoc077701/ . 
201 Stop Illegal Fishing  (2016), "South  Africa Accedes to the FAO Port State Measures Agreement ", 
29 June. Viewed  at: https://stopillegalfishing.com/news -articles/south -africa -accedes -fao-port-state-measures -
agreement/ . 
202 Policy for the Small Scale Fisheries Sector in South  Africa. Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201409/35455gon474.pdf . 
203 National Aquaculture Policy Framework. Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201409/36920gon763.pdf . 
204 Aquaculture Development Bill. Viewed  at: https://www.gov.za/xh/node/780520 . WT/TPR/S/ 447 • South Africa  
 
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  development. Through this policy , the small -scale inland fisheries sector will be formally recognized. 
The main priority for the sector is domesti c food security, job creation , and economic development.  
4.34.   In 2014, the Government launched Operation Phakisa: Oceans Economy. This aims to help 
unlock the economic potential of South  Africa's oceans through various growth areas that include 
aquaculture and marine protection services and ocean governance.205 Marine fisheries were not 
included as a priority , given they were considered to have a robust legislative framework already in 
place.  
4.35.   An Oceans Economy Master Plan  (OEMP) is currently being developed and i s set to be finali zed 
in June  2023.206 The OEMP seeks to advance stabili zation revival and growth of the subsectors within 
the ocean s economy (marine vessel manufacturing and repair , marine transport , offshore oil and 
gas, aquaculture , and fisheries) to contribute to job creation, increased GDP , and economic recovery.  
4.36.   Information was not available on the South  African fishing fleet, FDI restrictions in place in 
the fisheries sector, or on the level and type of government subsidies provi ded to the marine fishing 
sector. An  Aquaculture Development Enhancement Programme  (ADEP) is in place , which provides 
grant support for certain aquaculture operations that are level 1 -4 B-BBEE compliant. Grants are 
provided for up to 45% (50% for small bla ck enterprises) of qualifying investments. The grant is 
capped at ZAR  20 million.207 
4.2  Mining and energy  
4.2.1   Mining  
4.37.   Mining and quarrying accounted for 8.1% of gross value added  in 2022 (up from 6.4% 
in 2014) (Table  1.1) and directly employed 457,000 workers . Mine ral products account for more 
than one  fifth of South  Africa's merchandise exports, with coal and iron ores being the main exported 
products (Table  A1.1)  
4.38.   The main laws governing the mining sector are the Mineral and Petroleum Resources 
Development Act (Act  No. 28 of 2002, as last amended in 2008), the Mine Health and Safety Act 
(Act No.  29 of 1996, as last amended in 2008), the Diamond Act (Act No.  56 of 1986, as last 
amended in 2005), and the Precious Metals Act (Act No.  37 of 2005).  
4.39.   The Department of Mine ral Resources and Energy  (DMRE)  is responsible for the regulation 
and development of the minerals (and energy) sector and for ensuring sustainable and affordable 
energy, following the merger of two separate departments for minerals and energy.208 The 
South  African Diamond and Precious Metals Regulator  (SADPMR) regulates the diamond and 
precious metals industries; it buys, sells, exports , and imports diamonds through its Diamond 
Exchange and Export Centre  (DEEC) , as well as controlling the acquisition, posses sion, smelting, 
refining, fabrication, use , and disposal of precious metals.209 The State Diamond Trader, a public 
entity, has the right to purchase up to 10% of the run -of-mine production of all South  Africa's 
diamond producers; it sells to registered cust omers with a view to developing the diamond cutting 
and polishing industry, with a focus on supporting historically disadvantaged persons.210 The 
Government fully owns Alexkor, an alluvial diamond mining company (Section  3.3.5).  
 
205 DFFE. Viewed  at: 
https://www.dffe.gov.za/s ites/default/files/docs/publications/aquaculture_photobook2016.pdf . 
206 Parliamentary Monitoring Group , Update on the Ocean Economy Master Plan and Operation Phakisa 
Programmes, with Minister of Forestry, Fisheries and the  Environment . Viewed  at: 
https://pmg.org.za/committee -
meeting/36358/#:~:text=The%20purpose%20of%20the%20Oce ans,economic%20recovery%20and%20poten
tial%20growth . 
207 DTIC (2022), A Guide to the DTIC Incentive Schemes 2021/22 . Viewed  at: 
http://www.thedtic.gov.za/wp -content/uploads/the -dti-incentive -schemes -guide.pdf . 
208 DMRE, Annual Report  2020/21 . Viewed  at: 
https://www.energy.gov.za/files/Annual%20Reports/DMRE -Annual -Report -2020-21.pdf . 
209 WTO document WT/TPR/S/324/Rev.1, 5  February  2016; and SADPMR , Overview . Viewed  at: 
http://www.sadpmr.co.za/pages/about -us/overview . 
210 State Diamond Trader , Who We Are . Viewed  at: https://www.statediamondtrader.gov.za/who -we-
are/. WT/TPR/S/ 447 • South Africa  
 
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  4.40.   South  Africa is endowed with 53  different kinds of minerals.211 Since  2021, the Government 
has made its geoscience data publicly available to help attract investment. Th e main minerals 
extracted, in volume terms, are coal (25%), platinum group metals (24%) , gold (16%) , and iron 
ore (11%).212 In 2021, South  Africa was the world's biggest exporter of manganese ores and 
concentrates (HS  2602); chromium ores and concentrates ( HS 2610); platinum (HS  7110, 711011, 
711019); rhodium (HS  711031 , and 711039), iridium, osmium, and ruthenium (HS  711041 , 
711049). It was the world's 2nd-biggest exporter of palladium (HS  711021 , 711029); the 3rd-biggest 
exporter of iron ores and concentra tes (HS  2610); 6th biggest exporter of coal (HS  2701), 9th of 
diamonds (HS  7102), and 12th of gold (HS  710811, 710812, 710513).  
4.41.   A Broad -Based Socio -Economic Empowerment Charter for the Mining and Minerals Industry 
(Mining Charter) was issued in 2018.213 It contains targets to ensure broad -based and meaningful 
transformation of the industry , including shareholding requirements for historically disadvantaged 
persons/companies that mining right holders must comply with. In addition, right holders must 
spend  70% or more of their procurement on goods manufactured in South  Africa (i.e.  goods with a 
minimum of 60% local content). Local content verification is undertaken by the South  African Bureau 
of Standards  (SABS).214 
4.42.   In 2022, the DMRE released its Exploration  Strategy for the Mining Industry of South  Africa , 
which seeks to revitalize exploration activity, which has been lagging. To reach its target of attracting 
a 5% share of global exploration expenditure, the Government plans to provide more support to 
junior exploration companies with 51% ownership by historically disadvantaged South  African s and 
from public private partnerships for feasible projects. An exploration and mining investment 
promotion plan is expected.215 
4.43.   Under the Mineral and Petroleum Resources Development Act, minerals under the soil are 
owned by the State on behalf of its citizens. Foreigners and nationals may apply for a prospecting 
right, mining permit, reconnaissance permit, beneficiation right, expl oration right, and/or mining 
right if they comply with requirements set out in the Act . 
4.44.   As indicated in the previous Review, applications for the various rights/permits are assessed 
based on a "first  in, first assessed" principle, although preference may b e accorded to applications 
from historically disadvantaged peoples if received on the same date.216 The absence of a 
transparent and efficient cadastral system has been identified as having an adverse effect on 
investment decisions in the sector.217 Reported ly, there has been a backlog in the processing of 
rights, permits , and licence renewals.218 
4.45.   Taxation revenue from the domestic mining sector includes corporate income tax, dividends 
tax, and mineral royalties.  Exemptions from royalty payments, inter alia,  used to apply to small 
businesses with gross sales under ZAF 10 million.219  
4.46.   Average tariff protection for mining and quarrying remains low at about 0.1% in 2023 
(ISIC  definition), with rates ranging from zero to 10% (Main  Report, Table  A3.1).  
4.47.   Import prohibi tions are maintained on uncut diamonds. Exports of unpolished diamonds may 
only be carried out by a producer, a manufacturer (if it is a synthetic diamond), a dealer, or a holder 
 
211 DMRE. Viewed  at: https://www.dmr.gov.za/ . 
212 DMRE  (2022), The Exploration Strategy for the Mining Industry of South  Africa.  Viewed  at: 
https://www.gov.za/sites/default/file s/gcis_document/202204/46246gon2026.pdf . 
213 2018 Mining Charter. Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/2 01809/41934gon1002.pdf .  
214 SABS. Viewed  at: https://www.sabs.co.za/ . 
215 DMRE  (2022), The Exploration Strategy for the Mining Industry of South  Africa.  Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/202204/46246gon2026. pdf. 
216 WTO document WT/TPR/S/324/Rev.1, 5  February  2016.  
217 DMRE  (2022), The Exploration Strategy for the Mining Industry of South  Africa ; and Mining Weekly  
(2021), " Minerals Council Offers to Part Pay Cost of Replacing Samrad System ", 4 March . Viewed  at: 
https://m.miningweekly.com/article/minerals -council -recommends -replacement -of-samrad -to-encourage -
greater -investment -in-exploration -mining -2021-03-04. 
218 Mining Weekly  (2021), "Minerals Council Offers to Part Pay Cost of Replacing Samrad System", 
4 March . 
219 WTO document WT/TPR/S/324/Rev.1, 5 February 2016.  WT/TPR/S/ 447 • South Africa  
 
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  of an export permit. South  Africa continues to levy an export tax of 5% on un polished diamonds 
(Section  3.2.2).  
4.2.2   Energy  
4.48.   South  Africa continues to rely heavily on coal to meet its domestic energy needs (Chart  4.2). 
The 1998 White Paper on Energy Policy continues to guide the development of legislation, 
regulations, and strategies in the sector.220 
Chart  4.2 Total energy supply   by source, 2000 -20 
(Unit: 1,000 TJ)  
 
Source:  IEA, South  Africa . Viewed  at: https://www.iea.org/countries/south -africa . 
4.2.3   Electricity  
4.49.   The Electricity Regulation Act (No.  4 of 2006) governs the operation of the electricity sector 
in South  Africa. It provide s for the establishment of the national ene rgy regulator (National Energy 
Regulator of South  Africa  (NERSA)) and regulates licensing processes , as well as the generation, 
transmission, distribution, and trade in electricity.221 An Electricity Amendment Bill was tabled in 
Parliament in 2023; reported ly, it seeks to create a competitive electricity market, allowing several 
generators to compete on a level playing field.222 
4.50.   The D MRE is responsible for policy formulation and implementation. SOEs operating in the 
sector are E skom,  Electricity Distribution Industry Holdings , the Central Energy Fund , and the 
South  African Nuclear Energy Corporation (Section  4.2.3).  
4.51.   Electricity generation , while dominated by E skom  is, increasingly, open to participation of 
independent power producers  (IPPs). Eskom  has a statutory monopoly on electricity transmission. 
Electricity is distributed to households either directly by Eskom or by the respective mun icipalities. 
Data were not available on South  Africa's installed electricity capacity, national production of 
electricity, or the licensing framework for the generation of electricity.  
4.52.   South  Africa's electricity system is in crisis due to, inter alia, mism anagement, corruption, 
and high levels of debt at E skom;  lack of maintenance of E skom 's coal power plants ; and 
 
220 White Paper on Energy Policy. Viewed  at: 
https://www.energy.gov.za/files/policies/whitepaper_energypolicy_1998.pdf . 
221 Electricity R egulation Act. Viewed  at: https://faolex.fao.org/docs/pdf/saf67612.pdf . 
222 Government of South  Africa  (2023), " Minister Khumbudzo Ntshavheni: Launch of the Operat ion 
Vulindlela Progress Report ", 30 May. Viewed  at: https://www.gov.za/speeches/minister -khumbudzo -
ntshavheni -launch -operation -vulindlela -progress -report . 
01,0002,0003,0004,0005,0006,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Wind, solar, etc. Oil Biofuels and waste Hydro Nuclear Natural gas CoalChart 4. [ZAF] Total energy supply (TES) by source
(Unit: 1,000 TJ)
Source: IEA, South Africa . Viewed at: https://www.iea.org/countries/south -africa.WT/TPR/S/ 447 • South Africa  
 
- 329 - 
 
  underinvestment in the sector. While capacity shortages started to be observed as early as 2008, 
the situation has escalated since 2019 as Eskom' s ability to supply the national grid has further 
declined. Load -shedding (scheduled power cuts) has increased exponentially in recent years , which  
is having negative consequences for other economic activities.223 
4.53.   Recent measures taken to address this situa tion have reportedly included:  
• Institutional measures  including  (i) the establishment of a National Energy Crisis 
Committee of Ministers in 2022 to oversee an Energy Action Plan that aims to end load -
shedding224; and (ii)  the appointment in 2023 of a Minist er for Electricity, for the first time, 
with specific responsibility for addressing the deepening load -shedding crisis.  
• Reforms to restructure/support Eskom, including ( i) initial steps to unbundle E skom  
through the creation of a subsidiary transmission company, the National Transmission 
Company of South  Africa (NTCSA) in 2022; and (ii)  the introduction of an E skom  Debt 
Relief Bill in Parliament in 2023 aimed at restoring the financial stability and susta inability 
of the company.225 
• Measures to encourage new private -sector generation capacity and to accelerate 
procurement of this capacity , including (i) the easing of licensing regulations for electricity 
self-generation from 1  MW to 100  MW in 2021; (ii)  the removal of a requirement for 
companies to obtain a permit to generate their own power in 2022; (iii)  the removal of 
licensing requirements in 2023 to generate electricity, for facilities that have a connection 
to the transmission or distribution power sys tem under certain conditions226; 
(iv) implementation of reduced timeframes for registration and obtaining environmental 
authorizations227; and (v) the introduction of tax incentives for investments in rooftop 
solar.  
4.54.   Information was not available on the regul ation of electricity prices. Under the Integrated 
National Electrification Programme, South  Africa is pursing the objective of universal access to 
electricity by  2025. No data were available on developments over the review period.  
4.2.4   Petroleum and gas  
4.55.   Several  Acts govern the oil and gas industry in South  Africa .228 The D MRE is responsible for 
policy formulation and implementation. The Central Energy Fund, an SOE, manages the oil and gas 
assets and operations of the Government. Its subsidiaries include (i) the P etroleum, Oil and Gas 
Corporation of South  Africa  (PetroSA), which operates upstream oil and natural gas producing 
infrastructure in South  Africa, along with the GTL plant in Mossel Bay ; and (ii) the Petroleum Agency 
 
223 Data regarding government subventions provided to E skom  over the review period were not 
available.  
224 Government of South  Africa  (2022), " National Energy Crisis Committee of Ministers briefs media on 
National Energy Crisis ", 1 August . https://www.gov.za/speeches/media -briefing -national -energy -crisis-
committee -ministers -1-aug-2022-0000. The Energy Action Plan was announced by the President in July  2022. 
The resources and expertise needed to implement the Plan are being provided by the Resource Mobilisation 
Fund, which was  launched in 2023. Government of Sout h Africa  (2023), " Statement on the Cabinet Meeting of 
15 March  2023", 16 March . Viewed  at: https://www.gov.za/speeches/statement -cabinet -meeting -Wednesday -
15-march -2023-16-mar-2023-0000. 
225 National Treasu ry, Explanatory Note: Eskom Debt Relief . Viewed  at: 
https://www.treasury.gov.za/comm_media/press/2023/2 023050801%20Explanatory%20note%20on%20the%
20Eskom%20debt%20settlement%20arrangement.pdf . 
226 White and Case  (2023), " South  Africa  Exempts Private Generators from Generation Licence 
Requirements ", 27 January . Viewed  at: https://www.whitecase.com/insight -alert/south -africa -exempts -
private -generators -generation -licence -requirements . 
227 White and Case  (2023), "South  Africa  Exempts Private Generators from Generation Licence 
Requirements", 27 January .  
228 These are the Petroleum Products Act 2003, No.  120 of 1977; Petroleum Products Amendment Act, 
No. 2 of 2005; Gas Act 2001 , No. 48 of 2001; Gas Regulator Levies Act, 2002, No.  75 of 2002; Petroleum 
Pipelines Act, 2003, No.  60 of 2003; Petroleum Pipelines Levies Act, 2004, No.  28 of 2004; National Energy 
Act, 2008, No.  34 of 2008; Central Energy Fund Act, Act No.  38 of 1977; C entral Energy Fund Amendment Act, 
Act No.  48 of 1994; Electricity Regulation Act; National Nuclear Regulatory Act; Nuclear Energy Act; National 
Energy Regulator Act No.  40 of 2004; National Energy Act No.  34 of 2008; National Ports Act No.  12 of 2005; 
and Mineral and Petroleum Resources Development Act, No.  28 of 2002. WTO document WT/TPR/M/324/Add.1 .  WT/TPR/S/ 447 • South Africa  
 
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  of South  Africa which  is responsible fo r, inter alia, licensing onshore and offshore oil and natural gas 
exploration and production activities.  
4.56.   At the time of South Africa's previous Review, the downstream oil sector was diversified and 
included companies such as BP, Sasol, Shell, Chevron, Tot al, and Engen, which were in charge of 
importation and distribution. Smaller independent operators operated service stations.229 No update 
has been received in this respect.  
4.57.   Data/information was not available on petroleum and gas production and respective r eserves 
in South  Africa or on the pricing and taxation systems for petroleum products.  
4.58.   The review period saw a diversification in imports of natural gas. In 2014, over 90% of 
imported natural gas (HS  2711) came from Mozambique. However, by 2022, Mozambique accounted 
for only 51% of imports. It has increased imports of natural gas from the United  States (25% 
in 2022), Togo (9%) , and Nigeria.  
4.59.   Imports of natural gas from Mozambique are transported through the 535 -mile Sasol 
Petroleum Internationa l Gas pipeline to Sasol's Secunda synfuels plant. Sasol, the South  African 
Government, and the Government of Mozambique own the pipeline through a joint venture. The 
pipeline has a peak capacity of 524  million cubic feet per day of natural gas.230 
4.60.   South  Africa imports crude oil mostly from the Kingdom  of Saudi  Arabia (49.3% in 2022), 
Nigeria (35%), and Angola (9.4%) , which is refined in the country. However, given South  Africa's 
declining refining capacity, crude imports have decreased , and imports of finish ed products have 
increased, notably from the United  Arab Emirates  and India.231 
4.3  Manufacturing  
4.61.   South  Africa has a relatively developed and diverse industrial base. The manufacturing sector 
contributed 13. 7% to gross value added  in 2022 (Table  1.1). The sector experienced a sharp 
contraction in 2020 due to the COVID -19 lockdowns (down 12.5%), but overall has held its share in 
the economy. The largest industries are the automotive industry232, the food and beverage industry, 
and the petr oleum, chemical , and steel and metals industries.  
4.62.   South  Africa's manufacturing sector benefits from preferential market access under its RTAs 
and PTAs. South  Africa is the number one beneficiary of the African Growth and Opportunity 
Act (AGOA ) preferences in terms of Sub -Sahara Africa exports to the United  States (excl uding  crude 
petroleum); its main exports to the United  States include cars and (basic petro -) chemicals.233 
4.63.   South  Africa's industrial policy framework, while incorporating key aspects of nation al policy 
documents (such as the N DP 2030), is based on the National Industrial Policy Framework  (NIPF) 
of 2007. The NIPF has been further developed through successive Industrial Policy Action Plans234, 
as well as the Re -imagined Industrial Strategy of  2019 (Section  2.2), which focuses  on, inter alia, 
strategic value chains, the promotion of "localisation" (i.e.  local content), and sectoral master plans. 
To date, eight such sector plans have been elaborated, including for the automotive industry; the 
clothin g, textiles, footwear and leather industries; the steel and metal industry; and the furniture 
industry.235 
 
229 WTO document WT/TPR/S/324/Rev.1, 5  February  2016.  
230 WTO document WT/TPR/S/324/Rev.1, 5  February  2016.  
231 The value of South  Africa's imports of crude oil (HS  2709) dropped from a peak of 
USD 10,965  million in 2018 to USD  4,398  million in 2022. Conversely, the value of petroleum oils (other than 
crude) (HS  2710) increased from USD  4,521  million in 2018 to USD 18,730  million  in 2022.  
232 According to the Automotive Industry Master Plan, about one  third of manufacturing value -added 
comes directly or indirectly from vehicle assembly and automotive component manufacturing activity.  
233 U.S. International Trade Commis sion (2023), African Growth and Opportunity Act (AGOA): Program 
Usage, Trends, and Sectoral Highlights . Viewed  at: https://www.usitc.gov/publications/332/pub5419.pdf . 
234 DTI, Industrial Policy Action Plan 2018/19 -2020/21. Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201805/industrial -policy-action -plan.pdf . 
235 DTIC, Master Plans . Viewed  at: http://www.thedtic.gov.za/media -room/master -plans/ . WT/TPR/S/ 447 • South Africa  
 
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  4.64.   Tariffs remain an important trade policy instrument for the manufacturing sector. MFN tariffs 
on manufacturing activities (ISIC  3) average 8.9% in 2023, ranging from zero to 532.3% 
(Main  Report, Table  A3.1). The highest MFN tariffs are applied, on average, to imports of clothing 
and textiles, followed by food, beverages , and tobacco.  
4.65.   South  Africa administers a number of incentive schemes to encourage innovation and exports, 
and to provide the "critical" infrastructure for investment (Table  A3.2). In addition, the DTIC 
implements nine  specific incentive schemes in support of the manufacturing sector (Table  4.3). Data 
on these schemes was not a vailable.  
Table  4.2 Manufacturing incentive schemes, 2022  
Scheme/objective  Eligibility  Incentive  
Automotive 
Investment Scheme 
(AIS)  Light motor vehicle or component 
manufacturers, with production target above 
certain level.  
 
Must be B -BBEE compliant.  Cash grant of 20% for vehicle 
manufacturers and 25% for component 
manufacturers of the value of qualifying 
investments in productive assets, 
disbursed over 3 years. Additional cash 
grants of 5% or 10% for st rategic 
projects.  
People -Carrier 
Automotive 
Investment Scheme 
(P-AIS) Minimum investment of ZAR  30 million for 
assembler projects; and ZAR  1 million for 
component manufacturing projects.  
Must be B -BBEE compliant.  Cash grant of 20 %-35% of qualifying 
investments of CKD vehicle assemblers 
and component manufacturers.  
Medium and Heavy 
Commercial Vehicles 
Automotive 
Investment Scheme 
(MHCV -AIS) Must be B -BBEE compliant.   Cash grant of 20% for vehicle 
manufacturers and 25% for component 
manufacturers and  tooling companies  of 
the value of qualifying investment in 
productive assets, disbursed over 
3 years. Additional cash grant of 5% or 
10% for strategic projects.  
Black Industrialist 
Scheme (BIS)  Must have more than 50% black 
shareholding and management control.  
Minimum investment of ZAR  30 million.  
Must achieve at least 4  points from a list of 
8 points where factors such as employment, 
market share, localization of production or 
diversification , and export are considered . 
Must be B -BBEE compliant.  Grant of 30 %-50%, up to a maximum 
ZAR 50 million. The sharing ratio 
depends on the level of black ownership 
and management control.  
Agro -processing 
Support Scheme 
(APSS)  Minimum investment of ZAR  1 million.  
Boost the local capacity of identified 
products, or of export orientation.  
At least 50% of the materials are sourced 
from South  African suppliers, and at least 
30% from black South  African suppliers.  
Must be B -BBEE compliant.  Grant of 20 %-30%, up to a maximum 
ZAR 20 million over a two -year period. 
An additional 10% grant may be 
awarded for projects meeting criteria in 
employment, geographical distribution, 
and local content (70%).  
Manufacturing 
Competitiveness 
Enhancement 
Programme (MCEP)  Working capital loan:  
 - not applicable for start -ups; 
 - capped at ZAR  50 million per annum ; 
 - repayment period of 48 months ; 
 - B-BBEE level 4.  
Plant and equipment loans:  
 - for black industrialists ; 
 - start-ups may apply ; 
 - capped at  ZAR 50 million ; 
 - repayment period 84 months.  Loans at preferential interest rate (4%).   
Clothing & Textiles 
Competitiveness 
Improvement 
Programme (CTCIP)  To create a group of globally competitive 
clothing and textile companies.  Grant of 65% to individual companies 
and 75% to company clusters.  
Strategic Partnership 
Programme (SPP)  To encourage large private -sector 
enterprises (in partnership with the 
Government) to support, nurture , and 
develop SMEs within the partner's supply 
chain or sector.  
The strategic partner must be B -BBEE 
compliant, while the SME supported must be 
at least 51% owned by black South  African 
citizens.  Grants of 50:50 for manufacturing 
projects; and 70:30 for pro jects 
supporting the manufacturing supply 
chain.  
Maximum ZAR  15 million per financial 
year, over 3 years.  
Source:  DTIC (2022), A Guide to the DTIC Incentive Schemes 2021/22 . Viewed  at: 
http://www.thedtic.gov.za/wp -content/uploads/the -dti-incentive -schemes -guide.pdf . WT/TPR/S/ 447 • South Africa  
 
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  4.4  Services  
4.4.1   Financial services  
4.66.   South  Africa has a large, sophisticated, and resilient financial services sector with the bulk of 
the assets in banking, followed by pension funds and insurance.236 The financial services sector has 
a relatively high level of independence and financial compliance standards. It is regulated by bodies 
such as the Prudential Authority  (PA), which falls under the authority of the South  African Reserve 
Bank (SARB) , and Fi nancial Sector Conduct Authority  (FSCA). Since  2018, South  Africa has been 
implementing the Twin Peaks' model, with two authorities, i.e.  the PA responsible for regulating and 
supervising banks, insurers, cooperative financial institutions, financial congl omerates, and certain 
market infrastructures237; and the FSCA responsible for overseeing market conduct regulation and 
supervision of market participants and structures, as well as prudential supervision of pension funds 
and investment funds.238 
4.67.   In 2019, Sou th Africa ranked 19th out of 141  in the Global Competitiveness Index for its 
financial systems.239 The Johannesburg Stock Exchange  (JSE) ranked in the top  20 of all the 
exchanges in the world and was the largest stock exchange in Africa based on market capi talization 
in 2021.240 
4.68.   Under the GATS, South  Africa bound commercial presence in all insurance and 
insurance -related services for market access and in banking and other financial related services for 
both market access and national treatment.241 
4.69.   The South  African legislative framework on financial services changed significantly from 2014 
to 2023 (Table  4.3). 
Table  4.3 Legal instruments and amendments to legislation on financial services  
Legal instruments and 
amendments  Amendment purposes  Entry into 
force/published  
Development Bank of 
Southern Africa 
Amendment Act, 2014 
(Act No. 41 of 2014)  To, inter alia, increase the authori zed share capital of 
the Bank and amend the provisions regarding the 
certification of issued shares.  January  2015 
Banks Amendment Act, 
2015 (A ct No. 3 of 2015)  To enable the application of the provisions on 
arrangements and compromises in the Companies Act, 
2008, for banks under curatorship.  June 2015 
Financial and Fiscal 
Commission Amendment 
Act, 2015 (Act No. 4 of 
2015)  To, inter alia, strengthen the requirements for organs of 
state concerning the Commission's recommendations on 
the assignment of a power or function by an organ of 
state in one sphere of government to an organ of state 
in another sphere of government.  July 2015 
Finance Act, 2015 (Act 
No. 19 of 2015) and 
Finance Act, 2016 (Act 
No. 7 of 2016)  To approve unauthori zed expenditure and provide for 
matters connected therewith.  December  2015 and 
January  2017, 
respectively  
Financial Intelligence 
Centre Amendment Act, 
2017 (Act No. 1 of 2017)  To, inter alia, extend the objectives of the Centre to 
provide for sharing of information; to administer 
measures pursuant to resolutions ad opted by the 
Security Council of the United Nations; to provide for May 2017 
 
236 Financial  Sector Conduct Authority (2022), Financial Sector Outlook Study . Viewed  at: 
https://www.fsca.co.za/Documents/FSCA%20Financial%20Sector%20Outlook%20Study%202022.pdf . 
237 GCIS, South  Africa Yearbook : Finance (2018/19). Viewed  at: 
https://www.gcis.gov.za/sites/default/files/docs/resourcecentre/yearbook/yb1919 -10-Finance.pdf . The 
Prudential Au thority is an amalgamation of the SARB's Banks Supervision Department, the Insurance Division 
of the Financial Services Board and the Supervisory Team of the Co -operative Banks Development Agency.  
238 GCIS, South  Africa Yearbook:  Finance and Economy . (2019/2 0) Viewed  at: 
https://www.gcis.gov.za/sites/default/files/docs/resourcecentre/yearbook/Yearbook2020 -7-
Finance%20and%20Economy. pdf. 
239 World Economic Forum (2019), The Global Competitiveness Report . Viewed  at: 
https://www3.weforum.org/docs/WEF_TheGlobalCompetit ivenessReport2019.pdf . 
240 Financial Sector Conduct Authority (2022), Financial Sector Outlook Study .  
241 WTO Schedule of Specific Commitments for financial services  (WTO document  GATS/SC/78/Suppl.3, 
26 February  1998). WT/TPR/S/ 447 • South Africa  
 
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  Legal instruments and 
amendments  Amendment purposes  Entry into 
force/published  
risk management and compliance programmes, 
governance , and training relating to anti -money 
laundering and counter terrorist financing.  
Financial Sector 
Regulation Act, 2017 (Act 
No. 9 of 2017)  To, inter alia, establish a system of financial regulation 
by establishing the Prudential Authority and the 
Financial Sector Conduct Authority, and conferring 
powers on these entities; to make provision for the 
licensing of financial institutions.  August  2017 
Insurance Act, 2017 (Act 
No. 18 of 2017)  To, inter alia, provide for a legal framework for the 
prudential regulation and supervision of insurance 
business, and to introduce a legal framework for 
microinsurance to promote financial inclusion.  January  2018 
Financial Matters 
Amendment Act, 2019 
(Act No. 18 of 2019)  To, inter alia, amend the Banks Act, 1990, to regard 
national state -owned companies as public companies for 
purposes of the application of the Banks Act; to 
determine prerequisites for these compan ies and their 
holding companies to qualify to apply for establishment 
as a bank.  May 2019 
Financial Sector Laws 
Amendment Act, 2021 
(Act No. 23 of 2021)  To, inter alia, amend the South  African Reserve Bank 
Act, 1989, to provide for the performance of res olution 
functions by the Reserve Bank; the Banks Act, 1990, to 
exclude banks in resolution from the application of 
certain provisions; to establish a deposit insurance 
scheme, including a Corporation for Deposit Insurance 
and a Deposit Insurance Fund.  January 2022 
Source:  Compiled by the WTO  Secretariat, based on Government Gazettes . 
4.70.   South  Africa is a member of the Financial Action Task Force  (FATF) , the Eastern and Southern 
Africa Anti -Money Laundering Group , and the Egmont Group.242 In October  2021, the FATF Mutual 
Evaluation Report  (MER) concerning the effectiveness of South  Africa's anti -money laundering  (AML) 
and counter -financing of terrorism  (CFT) regime revealed many deficiencies across a broad range of 
assessed areas. It also indicated that there was a better rating achieved in respect of technical 
compliance , which speaks to the strengths of the AML/CFT legal framework. Whil e some of the 
deficiencies that were highlighted in the MER were addressed during the 12-month observation 
period afforded to South  Africa from October  2021, a decision to "grey list" South  Africa was taken 
in February  2023. South  Africa, through its National Treasury Department, is required to report back 
to the FATF on progress being made to address the remaining deficiencies as itemi zed in the FATF 
action plan within the allotted timeframes.  
4.4.1.1   Banking and other credit institutions  
4.71.   Under the Banks Act, 1990 (as  amended), banks in South  Africa may be owned and controlled 
by any person (nationals or foreigners). A bank licence is required, and an annual fee is levied. 
Applicants proposing to register or operate as banks or subsidiaries/branches of foreign banks ne ed 
to first be registered as a company under the Companies Act, 2008; must have a minimum capital 
of ZAR  250 million; and must maintain a prudential capital adequacy ratio of at least 11.5% as set 
by the PA with a minimum leverage ratio of at least 4%.243 
4.72.   From 2014 to mid-2023, 27  bank licence applications were approved , including 4 bank 
licences, 3  branch licences from foreign banks, 1  mutual bank licence, 4  co-operative bank licences , 
 
242 GCIS, South  Africa Yearbook:  Finance (2015/16),. Viewed  at: 
https://www.gcis.gov.za/sites/default/files/docs/resourcecentre/yearbook/Finance -SAYB1516.pdf . 
243 SARB Prudential Authority , Bank Licensing in the Republic of South  Africa  (including checklist) . 
Viewed  at: https://www.resbank .co.za/content/dam/sarb/what -we-do/prudential -regulation/functions -of-the-
prudential -
authority/licensing/Banking%20licencing%20in%20the%20Republic%20of%20South%20Africa%20(2021%20
update).pdf . WT/TPR/S/ 447 • South Africa  
 
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  and 15  representative office licences. Nine of these applications were f rom nationals and 18  from 
foreigners.244 
4.73.   Commercial banks are prohibited from engaging in insurance activities and are not allowed to 
hold more than 49% of the issued shares of an insurance company. There are also restrictions on 
establishing foreign branch es. The CEO of the branch and at least one other executive officer must 
be residents of South  Africa. The parent company must have held at least USD  1 billion in net assets 
for 18  months. The capital of the branch needs to be at least the highest of ZAR  250 million and 8% 
of assets. The foreign institution must have an investment grade debt rated by an internationally 
recognized credit rating agency.245 Limits are set on maximum interest rates and initiation fees that 
a bank can charge.246 
4.74.   Under Section 6(6) of the Banks Act,  1990, the SARB issued a capital framework based on 
the Basel  III framework for all banks, controlling companies, branches of foreign institutions, eligible 
institutions , and auditors of banks or controlling companies. The directive served  to inform all 
relevant persons of matters related to the prescribed minimum required capital ratios , as well as the 
application of various components of said capital requirements such as the systemic risk capital 
requirement (Pillar  2A), the domestic syst emically important bank  (D-SIB) capital requirement, the 
countercyclical buffer range, and the capital conservation buffer range.247 
4.75.   The Banking Association South  Africa  (BASA) represents banks in global structures and 
provides input to policymakers and sta keholders on the high -value payments system managed by 
the SARB; international and regional payments initiatives; and new innovations, such as the Central 
Bank Digital Currency  (CBDC), cryptocurrencies , and Distributed Ledger Technology  (DLT). For 
example,  the BASA hosts the Southern African Development Community Banking 
Association  (SADC  BA), which works to strengthen and integrate the regional banking system, 
among other objectives. BASA remains a member of the International Banking Federation (a chair 
in 2018).248 
4.76.   In 2021, over 81% of South  Africa's population had access to a bank account.249 In 2021/22, 
South  Africa had 31  registered banking institutions (down from 34  in 2014), which consisted of 
18 banks and 13  local branches of international banks. There were also 4 mutual banks, 
5 cooperative banks , and 29  authori zed representative offices (down from 39 in 2014) of 
international banks.250 The authorities indicate that the main reason for the drop in the number of 
representative offices was largely due to new strategies and business decisions from the 
representative offices' respective head offices, but may also have been due to the FATF gr ey listing 
(see above) and electricity challenges (Section  4.2.2). The banking sector remains dominated by 
the five largest banks , which collectively held 89.9% of total banking sector assets in 2021.251 Total 
deposits from the public amounted to ZAR  4.9 trillion, and loans and advances to companies to 
ZAR 1.4 trillion.252 
4.77.   The New Development Bank  (NDB) was established in FY2014/15 by BRICS countries and , 
in 2016/17, the NDB approved loans of over USD  3.4 billion.253 By 2019, the NDB had approved 
 
244 Approved licence applicatio ns from foreigners were for branches for foreign banks (from entities in 
China, the United  Kingdom , and India) and for representative offices (from entities in Switzerland, the 
United  Kingdom, Portugal, Spain, Qatar, Australia, Zimbabwe, Sweden, Mauritius,  and the Isle  of Man).  
245 WTO Services Trade Policy Database. Viewed at:  http://i -tip.wto.org/services/SearchApplied.aspx . 
246 WTO Services Trade Policy Database. Viewed at:  http://i -tip.wto.org/services/SearchApplied.aspx . 
247 South  African Reserve Bank Directive 5/2021, Ref.: 15/8/1/3, 20 May 2021. Viewed  at: 
https://www.resbank.co.za/content/dam/sarb/publications/prudential -authority/pa -documents -issued -for-
consultation/2021/Proposed%20Directive_Withdrawal%20of%20the%20temporary%20treatment%20of%20re
structure d%20credit%20exposures%20due%20to%20the%20Covid -19%20pandemic.pdf . 
248 BASA  (2018) , Annual Report 2018. Viewed  at: https://www .banking.org.za/wp -
content/uploads/2019/08/BASA -Annual -Report -2018.pdf . 
249 FSCA (2022), Financial Sector Outlook Study . Viewed  at: 
https://www.fsca.co.za/Documents/FSCA%20Financial%20Sector%20Outlook%20Study%202022.pdf . 
250 GCIS, South  Africa Yearbook:  Finance and Economy  (2021/22). Viewed  at: 
https://www.gcis.gov.za/sites/default/files/docs/gcis/6.Finance%20and%20Economy.pdf . 
251 GCIS, South  Africa Yearbook: Finance and Economy  (2021/22).   
252 Banking Association South  Africa (2021), Integrated Report. Viewed  at: 
https://www.banking.org.za/reports/integrated -report -2021/ . 
253 GCIS, South  Africa Yearbook : Finance (2016/17). Viewed  at: 
https://www.gcis.gov.za/sites/default/files/docs/resourcecentre/yearbook/Financ e2017.pdf . WT/TPR/S/ 447 • South Africa  
 
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  almost USD  2 billion to fund South  Africa's development initiatives and an estimated USD  1.5 billion 
per year was available for funding South  Africa's infrastructure build programme. South  Africa had 
made capital contributions to the NDB bank amounting to ZAR  18.5 billion by 2020 and a 
contribution of ZAR  9.2 billion was expected over the medium term.254 
4.78.   Digitalization has been a key priority in the banking sector over the recent years.255 However, 
fintech growth and investment remain low , with market share of 2% in 2019.256 In April  2020, the 
Intergovernmental Fintech Working Group (established in 2016) launched the Innovation Hub, which 
is intended to support the sector in introducing innovations that complement the core mandates of 
regulators, including financial stabili ty and soundness, consumer protection, financial inclusion, and 
fair lending practices.257 South  Africa has three new entrants using digitally driven business models , 
including Tyme Bank in 2018, Discovery Bank in 2019, and Bank Zero in 2021, reflecting a g rowing 
trend of digital banking services.  
4.4.1.2   Insurance  
4.79.   Depending on their activities, insurance companies may be regulated by the Insurance Act 
No. 18 of 2017, the Long -Term Insurance Act, 1998 , or the Short -Term Insurance Act, 1998. All 
insurance companies m ust be licensed by the PA.258 The Insurance Act , 2017 replaced the prudential 
section of the two other acts. The Long -Term Insurance Act and the Short -Term Insurance Act are 
still applicable from a market conduct perspective. The South  African Insurance Ass ociation  (SAIA) 
represents insurers internationally and is a member of the African Insurance Organisation  (AIO), the 
Global Federation of Insurance Associations  (GFIA), the International Union of Marine 
Insurance  (IUMI), the Organisation of East and Southern African Insurers  (OESAI) , and the 
International Association of Engineering Insurers  (IMIA).259 
4.80.   An insurance company is either insured as a non -life insurer or as a life insurer except in the 
case of composite reinsurers and micro -insurers. Insuranc e companies are prohibited from engaging 
in banking activities and capital markets activities (e.g.  trading in securities  or underwriting of 
securities), especially without the approval of the PA.260 Licensing fees apply. As of 2023, licensing 
fees were ZAR  199,450 for insurers and ZAR  53,000 controlling companies.261 The insurer needs to 
hold a certain amount of capital (ZAR  15 million for life and non -life insurance companies, 
ZAR 30 million for composited reinsurers , and ZAR  4 million for micro -insurers) a nd comply with the 
financial sector laws for their licen ce to be approved by the PA.262 As indicated by the authorities, 
an insurer (other than a reinsurer, a branch of a foreign reinsurer, Lloyds underwriter , or Lloyds) 
may not, without the approval of the  PA, conduct any business, including business similar to 
insurance business, outside South  Africa.  
4.81.   Reinsurance arrangements within or outside South  Africa may be used to mitigate an insurer's 
capital requirements under the Financial Soundness Standards for  Insurers, where it satisfies certain 
eligibility criteria. The PA applies limitations on certain reinsurance arrangements or transactions 
that could give rise to fronting and the risk of market spirals.  
4.82.   As indicated by the authorities, compulsory insuranc e in South  Africa includes workers' 
compensation, unemployment insurance, and insurance covering occupational diseases in mines and 
 
254 GCIS, South  Africa Yearbook:  Finance and Economy  (2019/20). Viewed  at: 
https://www.gcis.gov.za/sites/default/files/docs/resourcecentre/yearbook/Yearbook2020 -7-
Finance%20and%20Economy.pdf . 
255 Financial Sector Conduct Authority (2022), Financial Sector Outlook Study . Viewed  at: 
https://www.fsca.co.za/Documents/FSCA%20F inancial%20Sector%20Outlook%20Study%202022.pdf . 
256 Accenture (2019), Unlocking Digital Value in South  Africa's Retail Banking and Insurance Sector . 
Viewed  at: https://www.accenture.com/_acnmedia/pdf -105/accenture -dti-unlocking -digital -value -south -africa -
telecoms.pdf . 
257 South  African Insurance Association (2021), Annual Review– Rising to Unexpected Challenges . 
Viewed  at: https://www.saia.co.za/index.php?id=321 . 
258 Prudential Authority,  Regulatory Strategy 2021 –2024. Viewed  at: 
https://www.resbank.co.za/content/dam/sarb/what -we-do/prudential -regulation/PA Regulatory and 
Supervisory Strategy 2021.pdf . 
259 South  African Insurance Association (2021), Annual Review – Rising to Unexpected Challenges .  
260 WTO Services Trade Policy Database. Viewed at:  http://i -tip.wto.org/services/SearchApplied.aspx . 
261 WTO Services Trade Policy Database. Viewed at:  http://i -tip.wto.org/services/SearchApplied.aspx . 
262 Government Gazette (2018), V ol. 631, No.  41388, 18  January.  WT/TPR/S/ 447 • South Africa  
 
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  works , with the premiums being set out the underlying legislation. The Road Accident Fund provides 
compulsory cover to all u sers of South  African roads against injuries sustained or death arising from 
motor vehicle accidents.  
4.83.   In 2021, the PA published several regulatory instruments and guidance notes that entail the 
prudential standards with audit requirements for insurers and controlling companies.263 The PA 
supervised 158  institutions consisting of 66  life insurers, 70  non-life insurers, 9 professional 
reinsurers , and 9 micro -insurers , as well as 4 composite micro -insurers. South  Africa's life insurance 
sector was dominated by five companies that collectively held 72% of the total assets. The non -life 
insurance sector was dominated by eight foreign -owned companies that held 60% of gross premiums 
and constituted less than 2% of the total insurance industry assets. The micro -insurance policies are 
limited to ZAR  100,000 for life insurance and ZAR  300,000 for non -life insurance.264 
4.84.   As indicated by the authorities, motor insurance remains the largest non -life insurance 
industry's class of business, making up approximately 37% of the n on-life insurance business. 
In 2022, insurance penetration measured using premiums was 17.2% of GDP in South  Africa, among 
the highest penetrations in the world. South  Africa holds 70% of the African insurance industry's 
market premiums.265 
4.4.2   Telecommunications services  
4.85.   Over the review period , transport, storage , and communication services contributed an 
average of 7.6%  to gross value added  (Table  1.1). In 2019, the National Department of 
Communications and Digital Technologies  (DCDT) was estab lished through the merger of the 
Department of Communications and the Department of Telecommunications and Postal Services. Its 
mission is to create an enabling environment for the provision of communication services to all 
South  Africans in a way that enc ourages socio -economic development and investment266, and it has 
a new mandate to drive the use of emerging technologies. SOEs and government agencies  that have 
activities/responsibilities related to telecommunications services are listed in Table  4.4. The legal 
framework remains the Electronic Communications Act No.  36 of 2005 (as amended in 2007 and 
2014).  
Table  4.4 SOEs and government agencies, telecommunications sector  
Entity (legislative basis)  Respon sibilities / activities  
Independent Communications Authority of 
South  Africa (ICASA)  Regulates telecommunications, broadcasting, and 
postal services. Responsible for overseeing 
competition and consumer protection . 
Broadband Infraco (Broadband Infraco Act No.  33 of 
2007)  Provision of long -distance national and international 
broadband connectivity to licen sed private -sector 
partners, licence -exempt projects of national 
importance , and underserviced areas.  
SENTECH  Provider of electronic communica tions network 
services to the broadcasting and communications 
industry.  
Telkom SA  Telecom operator . 
Source:  WTO document WT/TPR/S/324/Rev.1 , 5 February 2016 ; and information provided by the authorities.  
4.86.   South  Africa's N DP 2030 (Section  2) sees information and communication technology  (ICT) 
as underpinning the development of a more inclusive and prosperous knowledge economy, given 
technology's  role as an enabler of economic activity. It recogni zes a challenging environment w ithin 
 
263 PA, Guidance Notice 5 of 2021 on Audit Requirements; and South  African Insurance 
Association  (2022). Annual Review  2022. Viewed  at: https://www.saia.co.za/index.php?id=321 . 
264 GCIS, South  Africa Yearbook:  Finance and Economy  (2021/22). Viewed  at: 
https://www.gcis.gov.za/sites/default/files/docs/gcis/6.Finance%20and%20Economy.pdf ; and Financial Sector 
Conduct Authority (2022), Financial Sector O utlook Study . Viewed  at: 
https://www.fsca.co.za/Documents/FSCA%20Financial%20Sector%20Outlook%20Study%202022.pdf . 
265 FSCA (2022), Financial Sector Outlook Study . Viewed  at: 
https://www.fsca.co.za/Documents/FSCA%20Financial%20Sector%20Outlook%20Study%202022.pdf . 
266 DCDT , Our Mandate . Viewed  at: https://www.dcdt.gov.za/about -us/mandates.html ; and Government 
of South  Africa , Department of Communications and Digital Technologies (DCDT) . Viewed  at: 
https://nationalgovernment.co.za/units/view/428/department -of-communications -and-digital -technologies -
dcdt. WT/TPR/S/ 447 • South Africa  
 
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  South  Africa characterized by poor ICT infrastructure, high prices, a lack of competition, and 
regulatory shortcomings. It stresses the need for a new policy framework to realize the goal of a 
fully connected society and envisages the State's role as  facilitating competition and private 
investment, intervening to address market failure, and being directly involved to ensure universal 
access and help marginalized communities to develop the capacity to use ICT effectively.267 
4.87.   Strategies being pursued in the telecommunications sector include the 2016 National 
Integrated ICT Policy White Paper268 and the Department of Telecommunications and Postal Services' 
2016 Strategic Plan.269 As indicated in the previous Review, South  Africa's licensing regime is 
technologically neutral under the Electronic Communications Act. There are two categories of 
licences: individual licences, which allow for the provision of services at national or provincial levels ; 
and class licences , which enable services to be provided at the local and district levels. Applications 
for class licences may be made at any time. Applications to obtain an individual network licence 
(e.g. to deploy networks, fibre, and base stations) may on ly be made when the Minister has issued 
an invitation to apply.  However, operators may buy an existing individual network licence subject to 
prior approval.  
4.88.   There continue to be two operators in the fixed line segment : Telekom  (the former incumbent ) 
and Ne otel. The Government has a controlling share in Telekom. Reportedly, the following services 
are under monopoly: domestic fixed long distance , international gateways , international fixed long 
distance , and digital subscriber line  (DSL).270 Four operators pro vide mobile services: Vodaphone , 
MTN, Telekom Mobile , and Cell C . Information was not available on operators' market share. The  
ITU estimates that prices for broadband and high consumption mobile and voice packages are 
unaffordable for a large percentage o f the South  African population.271 
4.89.   There were various developments over the review period with respect to enhancing 
telecommunications infrastructure and increasing broadband access. Reportedly, the entry into force 
of a Rapid Deployment Policy and Policy D irection and a standard draft by -law for wayleave approvals 
should speed up the building of telecommunications infrastructure, such as wires and towers.272 A 
long-awaited spectrum auction was held in 2022; reportedly , spectrum allocation had been a major 
bottleneck in deploying wireless technologies.273 Additionally, more spectrum will be freed up with 
the transition from analogue terrestrial television broadcasting to digital terrestrial broadcasting. 
Government initiatives to increase broadband access inclu de a South  Africa Connect initiative to 
increase connections to public facilities.274 As part of the 2020 Presidential Employment Stimulus 
(Section  1), ZAR  346 million was earmarked to expand broadband connectivity to 1  million people 
in low-income communities.275  
4.90.   ICASA regulates mobile termination rates. It intervenes only on the wholesale side. The 
interconnection framework allows operators to negotiate interconnection agreements among 
 
267 National Development Plan 2030. Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201409/ndp -2030-our-future -make -it-workr.pdf . 
268 National Integrated ICT Policy White Paper . Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/201610/40325gon1212.pdf . 
269 Department of Telecommunications and Postal Services (2016 ), Strategic Plan (2015 -20) and Annual 
Performance Plan (2016/17) . Viewed  at: https://static.pmg.org.za/160525dtps.pdf . 
270 ITU, DataHub: South  Africa . Viewed  at: 
https://datahub.itu.int/data/?e=ZAF&c=701&i=100045&s=2585 . 
271 ITU, ICT Price Basket. Viewed  at: https://www.itu.int/en/ITU -
D/Statistics/Dashboards/Pages/IPB.aspx . The price basket index measures the affordability of communications 
services, with 2% GNI per capita as being the affordable en try level.  
272 Government of South  Africa  (2023), "Minister Khumbudzo Ntshavheni: Launch of the Operation 
Vulindlela Progress Report", 30  May.  
273 National Development Plan 2030, p.  192.  
274 SA Connect is being implemented through the State Information Technology Agency and Broadband 
Infraco. Phase  1 of SA  Connect has been completed and involved connecting 970  government facilities 
(including schools, health facilities, post offices, police stations , and government offices) in rural district 
municipalities to broadband services. Phase  2, which aims to connect over 42,000  government facilities across 
South  Africa,  is awaiting funding. DCDT, SA Connect . Viewed  at: https://www.dcdt.go v.za/sa -connect -
document.html . 
275 Presidential Employment Stimulus. Viewed  at: 
https://www.gov.za/sites/defaul t/files/gcis_document/202010/presidential -employment -stimulus.pdf . WT/TPR/S/ 447 • South Africa  
 
- 338 - 
 
  themselves; they only revert to ICASA if they cannot  arrive at an agreement. There is a dedicated 
tribunal that adjudicates in interconnection disputes.  
4.91.   Given the geographical size of South  Africa, providing universal service is a challenge. Projects 
to finance universal service are covered by the Universal  Service and Access Fund established under 
the Electronic Communications Act. It comprises contributions from all licence holders at the rate of 
1% of their revenue.276 In addition, operators that were issued spectrum licences in the 
above -mentioned 2022 au ction were required to ensure a level of coverage in rural areas and to 
public institutions.  
4.92.   New Number Portability Regulations came into effect in March  2022, repealing those in place 
since 2005.277 
4.4.3   Transport  
4.93.   The Department of Transport remains responsible  for regulating transport in South  Africa  
(rail, road, maritime, air , and public transport). In 2022, transport, storage , and communication 
accounted for 7. 6% of gross value added in 2022 (Table 1.1) . South  Africa  is an important transit 
point for exports and imports of goods in the region.  
4.94.   Key challenges facing the transport sector over the review period included managing the 
impact of the COVID -19 pandemic; disruption caused by industrial action at South  Africa 's ports278; 
steep increases in maritime conta iner freight rates279; depletion of the rail network due to under -
maintenance as well as theft and sabotage of rail infrastructure280; and a backlog in the maintenance 
of the road network.281 
4.95.   The guiding policy documents for the transport sector are the National Transport Master 
Plan 2050, approved by the Cabinet in 2016 , and the White Paper on National Transport 
Policy  2021.282 Both seek to create a sustainable integrated transport system (within the country 
and region) as well as enhanced infrastructure to facilitate the movement of goods and people and 
improve trade competitiveness. They also provide for the establishment of an independent single 
transport economic regulatory authority to implement government policy.  
4.96.   South  Africa  is a signatory to the 19 96 SADC Protocol on Transport, Communications and 
Meteorology, which provides a framework for the cooperation in implementing an integrated 
 
276 Further information on the use of the Universal Service Access Fund may be viewed on the website  of 
the Universal Service and Access Agency of South  Africa: http://www.usaasa.org.za/usaif/ . 
277 Bowmans (2022), "South  Africa: Number Portability Regulations Come Into Effect", 8  March. 
Viewed  at: https://bowmanslaw.com/insights/technology -media -and-telecommunications/south -africa -
number -portability -regula tions-come -into-effect/ . 
278 Port Technology International  (2022), " South  Africa n Terminals Remain Choked Up as Strike Action 
Ends", 20 October  Viewed  at: https://www.porttechnology.org/news/south -african -terminals -remain -choked -
up-as-strike -action -ends/ ; and  UNCTAD (2022) , Review of Maritime Transport.  Viewed  at: 
https://unctad.org/system/files/official -document/rmt2022_en.pdf . 
279 UNCTAD notes that over the period December  2020-December  2021, rates per TEU on the Sha nghai 
to South  Africa  (Durban) route increased from USD  2,521 to USD  6,450. UNCTAD  (2022), Review of Maritime 
Transport . Viewed  at: https://unctad.org/system/files/official -document/rmt2022_en.pdf . 
280 Bloomberg  (2023), " Theft of Hundreds of Miles of Cable Hits South  Africa  Rail Route ", 31 May. 
Viewed  at: https://www.bloomberg.com/news/newsletters/2023 -05-31/supply -chain -latest -cable-theft-idles-
crucial -south -african -rail-route . 
281 Reportedly 80% of the national road network is older than its design life, and a steady year -on-year 
decline in the condition of the provincial road network has occurred since the  1990s. This situation has been 
partly linked to budget cuts for road maintenance to service debts related to an e -toll project. 
Businesstech  (2022), " 80% of South  Africa' s Roads Have Reached the End of Their Design Life: Minister ", 
24 February . Viewed  at: https://businesstech.co.za/news/motoring/562306/80 -of-south -africas -roads -have-
reached -the-end-of-their-design -life-minister/  and (2022), " The Final Plan for E-Tolls in South  Africa", 
26 October. Viewed  at: https://businesstech.co.za/news/government/638129/the -final-plan-for-e-tolls-in-
south -africa/ . 
282 Department of Tran sport (2022), White Paper on National Transport Policy 2021 . Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/202205/46422gen1050.pdf . This replaces the 1996 
White Paper on Transport. Department of Transport (2016), National Transport Master Plan  2050. Viewed  at: 
https://www.transport.gov.za/documents/11623/39906/00_TableContents2017.pdf/1f534d84 -dba9-4bff-b252-
b5acb3a97deb ; https://www.transport.gov.za/n atmap -2050. WT/TPR/S/ 447 • South Africa  
 
- 339 - 
 
  transport network.283 At the SADC level , a Regional Infrastructure Development Master Plan (which 
inter alia, incorporates transport) and a Regional Corridor Strategy are also being implemented.  
4.4.3.1   Air transport  
4.97.   South  Africa  has three main international airports (Johannesburg O.R. Tambo, Cape Town 
International , and Durban's King Shaka International). In addition, i t has seven domestic airports 
(Bloemfontein, East London, George, Kimberl ey, Pilanesburg, Port Elizabeth, and Upington).  
4.98.   The Airport Company of South  Africa  (ACSA), an SOE, owns and operates South  Africa 's 
nine main airports.284 ACSA is legally and financia lly autonomous from the Government and operates 
under commercial law. It is 70% owned by the Government, through the Department of Transport. 
Twenty percent  of its shares are owned by the Public Investment Corporation, and the remainder 
are held by black e conomic empowerment shareholders and employees.285 Ground handling services 
must be licensed by ACSA and may be provided by airlines themselves or by  third parties.  
4.99.   The air transport sector was severely affected by the COVID -19 pandemic, with the number 
of international and domestic passenger flights dropping by 66.3% and 57% , respectively,  between 
2019 and 2020. Cargo flights were less severely affected (Chart  4.3). Information was not available 
on government support to the airlines sector in response to th e COVID -19 pandemic.  
Chart  4.3 Impact of COVID -19 on air transport, 2019 and 2020  
 
Source:  ICAO, Operational Impact on Air Transport . Viewed  at: https://data.icao.int/coVID -
19/operational.htm . 
4.100.   The Air Services Licensing Council is responsible for licensing airlines in South  Africa , 
seemingly under the framework of the Air Services Licensing Act (Act No.  115 of 1990).286 Under 
 
283 SADC , Protocol on Transport, Communications and Meteorology  1996. Viewed  at: 
https://www.sadc.int/document/protocol -transport -communications -and-meteorology -1996. 
284 ACSA , Company Profile: About Airports Company South  Africa . Viewed  at: 
https://www.airports.co.za/about -us/airports -company/company -profile . 
285 WTO document WT/TPR/S/324/Rev.1, 5  February  2016. 
286 Air Services Licensing Act ( Act No.  115 of 1990 ). Viewed  at: 
https://www.transport.gov.za/documents/11623/19945/AirServicesAct2016.pdf/fdf85dd4 -c0d1-43d2-93fe-
985b9628514c . 
05001,0001,5002,0002,5003,0003,5004,0004,500
January
February
March
April
May
June
July
August
September
October
November
December
 201902,0004,0006,0008,00010,00012,00014,000
January
February
March
April
May
June
July
August
September
October
November
DecemberInternational passenger flights Domestic passenger flights
% difference 2019 -20: -57.9% % difference 2019 -20: -66.3%Chart 4.[BTW] Impact of COVID 19 on air transport, 2019 and 2020
Source: ICAO, Operational Impact on Air Transport. Viewed at: https://data.icao.int/coVID -19/operational.htm.0102030405060708090
January
February
March
April
May
June
July
August
September
October
November
DecemberInternational cargo
% difference 2019 -20: -28.8%WT/TPR/S/ 447 • South Africa  
 
- 340 - 
 
  the Act, licensed operators must either be natural persons resident in South  Africa  or a company in 
which 75% of the shareholders are residents. The Act also provide s the possibility for the responsible 
Minister to make exemptions to thi s rule. As of mid -2023, there were five  licensed commercial 
airlines in South  Africa  (South  Africa n Airways  (SAA) , Airlink, CemAir, FlySafair, and Lift Airline). Of 
these, SAA is 49%  owned by the Government. It narrowly avoided bankruptcy following a state  
bailout, debt restructuring , and sale of 51% of the company to a group of investors (Takatso 
Consortium) in 2021 (Section  3.3.5).287 In 2021, Mango Airlines, the low -cost subsidiary of SAA , 
entered bankruptcy protection.288 
4.101.   Information was also not availabl e on developments over the review period with respect to 
signature/entry into force of new bilateral air services agreements.  
4.4.3.2   Maritime services  
4.102.   South  Africa  has eight  main commercial ports. Of these, there are five  main ports located 
on South  Africa 's East  Coast, namely Richards Bay, Durban, East London, Port Elizabeth, and 
Mosel  Bay, and two main ports on its West Coast (Cape  Town and Saldanha). It also has a deep -
water transhipment hub at Ngqura Port. The main activities of these ports are described in 
South Africa 's previous Review and have not changed.289 As indicated in the previous Review, 
Transnet National Ports Authority  (TNPA) is in charge of the landlord function for ports , and Transnet 
Port Terminals is responsible for ports and cargo terminal mana gement. The Ports Regulator of 
South  Africa  regulates the tariffs and general port management function of the TNPA. Information 
was not available on port efficiency, on port calls at South  Africa's ports, or whether private -sector 
participation in the prov ision of port services is permitted.  
4.103.   Information was not available on ship registration requirements and related eligibility criteria 
or on the size of South  Africa's shipping fleet. Reportedly, there are plans to create a national 
shipping company.290 
4.104.   As indicated in its previous Review, South  Africa allows both local and foreign -owned vessels 
on international trade routes to carry its coastal cargo. Information was not available on the size of 
the cabotage market and the main goods transported between domestic ports.  The White Paper on 
National Transport Policy  2021 (see above) calls for the introduction of cabotage protection 
legislation at a continental level in Africa or regional level in Southern Africa , as well as negotiations 
on bilateral shipping or taxation agreements with non -resident ship owners. This is in response to 
the considerable competition and economic pressures from foreign competitors in the freight market.  
4.4.3.3   Rail transport  
4.105.   South  Africa n has a large rail network of 3 0,400  track-km. Transnet Freight Rail, a n SOE , 
inter alia, owns and operates South  Africa 's freight railways (both the tracks and the rolling stock). 
The Passenger Rail Agency of South  Africa  (PRASA) owns and operates the urban commuter 
network. Bombela Co ncession Company (Pty) Ltd partially financed and constructed the Gautrain 
Rapid Rail link that connects Johannesburg, Pretoria, Kempton Park , and O.R. Tambo International 
Airport under a concession agreement with the Gauteng Provincial Government.291 
4.106.   Trans net is experiencing difficulties due to mismanagement, high levels of debt, 
underinvestment in infrastructure, broken trains, theft/sabotage of tracks, and competition from the 
private sector (transport of freight via road). This has had a negative spill -over to other aspects of 
 
287 The Guardian  (2021), " South  Africa n Airways Resumes Flights after Bankruptcy ", 23 September.  
Viewed  at: https://guardian.ng/news/south -african -airways -resumes -flights -after-bankruptcy /. 
288 CH Aviation  (2021), "South  Africa's Mango to  Enter Bankruptcy Protection", 26  July. Viewed  at: 
https://www.ch -aviation.com/portal/news/106085 -south -africas -mango -to-enter -bankruptcy -prote ction. 
289 WTO document WT/TPR/S/324/Rev.1, 5  February  2016 (Annex  4, Table  4.3). 
290 Maritime Executive  (2022),  South  Africa  Releases Plan to Launch National Shipping Company , 
3 November.  Viewed  at: https://maritime -executive.com/article/south -africa -releases -plan-to-launch -national -
shipping -company ; and Businesstech (2022), "B ig Plans for New State -owned Shipping Company in 
South  Africa", 3  November. Viewed  at: https://businesstech.co.za/news/governmen t/640377/big -plans -for-
new-state-owned -shipping -company -in-south -africa/ . 
291 The contract also includes operation and maintenance of this service for 15 years. Bombela 
Concession Company (Pty) Ltd. Viewed  at: https://www.bombela.com/who -we-are/. WT/TPR/S/ 447 • South Africa  
 
- 341 - 
 
  the economy, including lower than expected coal and iron ore exports due to train services running 
at below capacity.292 
4.107.   The 2022 National Rail Policy White Paper puts forward ideas of how these challenges could 
be addressed. For exa mple, it suggests increased focus on the road -to-rail migration strategy 
(i.e. positioning rail as the backbone of the transport system including freight logistics and passenger 
mobility) and encourages substantial third -party or private -sector participati on in the rail sector. 
Moreover, to address the rail sector challenges, the Government was to produce a National Rail 
Master Plan to help secure investment, improve governance of institutions , and integrate regulatory 
frameworks. The policy was meant to al ign with the Vision  2040 for Railway Revitalization in Africa 
adopted by African Transport Ministers in 2014, covering infrastructure renewal, automated 
signalling, cross -border interoperability , and compatibility with international standards. Integrating 
freight transport operations is one major area of focus in the Master Plan, i.e.  via a "pit  to port" 
strategy with more equal share between road and rail transport modes in freight service delivery. 
The Policy states that the market structure will be split  between infrastructure and train operators.293 
4.4.4   Tourism  
4.108.   The Department of Tourism has overall responsibility for the tourism sector in South  Africa. 
Other government institutions in tourism include the Tourism Grading Council of 
South  Africa  (TGCSA), South  Africa's quality assurance body for national tourism products , and the 
Tourism B -BBEE Charter Council , which advises on sector -specific matters affecting B -BBEE in 
entities within the sector. Private -sector operators are represented by the Tourism Business  Council 
of South  Africa  (TBCSA) and the South  African Tourism Services Association  (SATSA).  
4.109.   The Tourism Act , 1993 has been replaced by the Tourism Act , 2014, which seeks to, 
inter alia, develop and promote sustainable tourism to benefit all residents and foreign visitors; 
promote quality tourism products and services; provide support for marketing of South  Africa 
domestically and internationally as a tourist destination; provide for the continued existence of the 
South  African Tourism Board; provide for the establishment of the Tourism Grading Council; and 
regulate the tourist guide profession. The norms and standards for the safe operations of the tourism 
sector in the context of COVID -19 pandemic and beyond were adopted as part of the Act an d aligned 
with the World Tourism Organization  (UNWTO) safety guidelines.294 
4.110.   According to the World Economic Forum Travel and Tourism Development Index 2021, 
South  Africa ranked 68th of 117 , with a score of 3.8 of 7 (from 61st of 140  with a score of 4.0 in 2019) 
and has the largest travel and tourism market  in Africa.295 
4.111.   Tourism has been identified as one of the strategic sectors under the N DP 2030 and the 
Re-imagined Industrial Strategy, given its labour intensity and potential to stimulate economic 
growth. T he National Tourism Sector Strategy  (NTSS: 2016 -2026) provides a blueprint for the sector 
and seeks to position South  Africa as one of the top 20  tourism destinations globally. It is based on 
several pillars , including effective marketing, ease of access ( into and within the country), visitor 
experience, and inclusive growth. In addition, the Tourism Strategic Plan for 2020/ 21 to 2024/25 
aims to achieve 21  million tourist arrivals in 2030; it, inter alia, emphasi zes the importance of 
tourism in contributing  to South  Africa's priorities of economic transformation and job creation.296 
According to the authorities, a Tourism Crisis Management Strategy is under development.  
4.112.   The COVID -19 pandemic had a major impact on the sector. According to official data, 
touris m's contribution to GDP declined from 3.7% (ZAR  208 billion) in 2019 to 2.2% 
 
292 The Economist  (2023) , "South  Africa's Collapsing Railway Company Is a Cautionary Tale", 
19 January . Viewed  at: https://www.economist.c om/leaders/2023/01/19/south -africas -collapsing -railway -
company -is-a-cautionary -tale. 
293 Department of Transport, 2022 National Rail Policy White Paper . Viewed  at: 
https://www.gov.za/sites/default/files/gcis_document/202205/46356gon2077.pdf . 
294 Tourism Act, 2014  (Act No.  3 of 2014 ), Government Gazette , No. 37538.  
295 World Economic Forum (2022) , Travel & Tourism Development Index 2021 . Viewed  at: 
https://www3.weforum.org/docs/WEF_Travel_Tourism_Development_2021.pdf?_gl=1*x30ao8*_up*MQ..&gcli
d=EAIaIQobChMI55zumNyS_wIVBP93Ch37GwQ2EAAYASAAEgL5ofD_BwE . 
296 Department of Tourism, Tourism Strate gic Plan 2020/21 -2024/25 . Viewed  at: 
https://www.tourism.gov.za/AboutNDT/Publications/Strategic%20Plan%20%202020 -21%20to%20%202024 -
25.pdf . WT/TPR/S/ 447 • South Africa  
 
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  (ZAR 123 billion) in 2020 due to COVID -19-related restrictions and its share of total employment 
declined from 4.8% (about 780,000  directly employed persons) in 2019 to 3.1% (abou t 
459,000  directly employed persons) in 2020.297 Likewise, arrivals of foreign travellers declined from 
about 15  million in 2019 to about 3  million in 2020.298 In response to the pandemic, the Government 
launched a Tourism Sector Recovery Plan in 2020 in collaboration with the private sector. This aims 
to protect key tourism assets and rejuvenat e supply.  
4.113.   South  Africa has various incentive schemes (in addition to the above -mentioned Tourism 
Sector Recovery Plan). The Tourism Enterprise Partnership  (TEP) and Tourism Incentive Programme 
seek to support SMMEs by helping them participate in local and international trade exhibitions, thus 
creating direct linkages with international tourism companies. The Market Access Support 
Programme  (MASP) aims to reduce  the cost burden for small tourism enterprises to participate in 
international trade platforms (i.e.  covering exhibition fees, accommodation , and return airfare for 
exhibitions and marketing roadshows) and thereby improv e their access to buyers in new and growth 
markets to unlock demand growth. The Tourism Grading Support Programme encourages wider 
participation in the tourism grading system and reduces the cost burden of grading on small tourism 
enterprises by offering discounts of between 80% and 90% on t he cost of star grading assessment 
fees for accommodation establishments and meeting venues.299 
 
 
297 Statistics South  Africa (March  2023), Tourism Satellite Account for South  Africa, Final  2018 and 
Provisional  2019 and 2020 . Report No.  04-05-07. Viewed  at: 
https://www.statssa.gov.za/?page_id=1854&PPN=Report -04-05-07&SCH=73591 . 
298 Statistics South  Africa (2022) , Tourism . Report No.  03-51-02. V iewed  at: 
https://www.statssa.gov.za/publications/Report -03-51-02/Report -03-51-022022.pdf . 
299 GCIS, South  Africa Yearbook: Tour ism (2021/22 ). Viewed  at: 
https://www.gcis.gov.za/content/resourcecentre/sa -info/yearbook .  
  WT/TPR/S/447 • South Africa  
 
- 343 - 5  APPENDIX  TABLES  
Table  A1.1 Merchandise exports by HS section/chapter/subheading, 2014 -22 
HS section/HS chapters/ subheadings  2014  2015  2016  2017  2018  2019  2020  2021  2022  
Total exports (USD  million)  92,590.7  80,264.5  75,912.6  88,233.2  93,677.4  89,396.0  85,226.8  121,321.3  121,616.3  
(% of total)  
1-Live animals and products  1.2 1.3 1.4 1.2 1.2 1.2 1.2 1.0 0.9 
2-Vegetable products  4.8 5.0 5.4 5.4 5.5 5.3 6.4 5.3 5.8 
HS 08 Edible fruit and nuts; peel of citrus fruit 
or melons  3.1 3.6 3.8 3.8 3.9 3.8 4.5 3.6 3.6 
3-Fats and oils  0.3 0.3 0.4 0.3 0.3 0.2 0.4 0.3 0.4 
4-Prepared food, beverages and tobacco  4.3 4.4 4.4 4.2 4.3 4.4 4.2 3.3 3.5 
5-Mineral products  23.5 20.7 20.4 25.3 23.8 25.0 23.6 24.0 28.1 
HS 27 Mineral fuels  10.2 9.7 9.8 12.0 10.7 9.8 8.1 8.7 14.3 
HS 2701 Coal; briquettes, ovoids and similar 
solid fuels manufactured from coal  5.5 5.1 5.5 6.5 6.7 5.3 4.6 5.0 11.0 
HS 26 Ores, slag and ash  12.8 10.5 10.1 12.8 12.4 14.6 15.0 14.9 13.2 
HS 2601 Iron ores and concentrates, 
including roasted iron pyrites  7.4 5.1 4.7 5.4 4.6 6.5 7.2 8.1 5.3 
6-Chemicals and products thereof  6.3 6.6 6.1 6.2 6.3 6.2 6.5 6.3 6.4 
7-Plastics and rubber  2.3 2.1 2.2 2.0 2.0 2.1 1.9 1.6 1.8 
8-Raw hides and skins; leather, furskins and 
articles thereof  0.5 0.5 0.4 0.4 0.3 0.3 0.2 0.2 0.2 
9-Wood, cork, straw  0.6 0.6 0.6 0.6 0.6 0.6 0.5 0.5 0.5 
10-Pulp of wood; paper and paperboard  1.8 1.9 2.0 1.9 1.8 1.4 1.7 1.2 1.6 
11-Textiles and textile articles  1.4 1.5 1.5 1.5 1.5 1.4 1.3 1.2 1.0 
12-Footwear, headgear, etc.  0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 
13-Articles of stone, plaster, cement  0.5 0.6 0.6 0.5 0.5 0.5 0.4 0.4 0.4 
14-Precious stones and metals  17.2 17.1 17.4 16.0 17.2 16.8 22.6 27.5 20.8 
HS 71 Natural or cultured pearls, precious or 
semi-precious stones, precious metals, metals 
clad with precious metal  17.2 17.1 17.4 16.0 17.2 16.8 22.6 27.5 20.8 
HS 7110 Platinum, unwrought or in 
semi-manufactured forms, or in powder 
form 7.0 8.5 8.0 7.5 8.4 9.3 12.6 19.1 13.7 
15-Base metals and articles thereof  12.9 12.2 12.0 12.0 12.1 11.0 9.2 9.6 10.2 
HS 72 Iron and steel  7.6 6.9 7.0 6.8 6.7 6.0 4.7 5.2 5.4 
HS 7202 Ferro -alloys  4.6 4.4 4.7 4.2 4.0 3.6 3.2 3.4 3.5 
16-Machinery, electrical equipment  9.8 9.8 9.3 8.1 8.1 8.1 7.6 6.9 7.0 
HS 84 Machinery and mechanical appliances; 
parts thereof  7.2 7.2 6.8 6.1 6.2 6.1 5.8 5.5 5.5 
17-Transport equipment  10.4 12.7 13.3 12.0 12.3 13.6 10.5 9.4 9.7 
HS 87 Vehicles  9.5 11.5 12.1 11.1 11.6 12.8 9.8 8.8 9.1 
HS 8703 Motor cars and other motor vehicles 
for the transport of persons  4.7 6.9 7.0 6.4 6.5 7.5 5.4 4.4 4.7  
  WT/TPR/S/447 • South Africa  
 
- 344 - HS section/HS chapters/ subheadings  2014  2015  2016  2017  2018  2019  2020  2021  2022  
HS 8704 Motor vehicles for the transport of 
goods  3.3 3.0 3.6 3.4 3.7 3.9 3.3 3.3 3.3 
18-Precision equipment  0.8 0.8 0.8 0.7 0.6 0.7 0.7 0.5 0.5 
19-Arms and ammunition  0.2 0.4 0.4 0.3 0.3 0.1 0.0 0.1 0.1 
20-Miscellaneous manufactured articles  0.8 0.8 0.8 0.7 0.7 0.6 0.5 0.4 0.5 
21-Works of art, etc.  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Other  0.1 0.3 0.3 0.5 0.2 0.2 0.3 0.1 0.1 
Source:  WTO Secretariat calculations, based on UN Comtrade database . 
   
  WT/TPR/S/447 • South Africa  
 
- 345 - Table  A1.2 Merchandise exports by destination, 2014 -22 
  2014  2015  2016  2017  2018  2019  2020  2021  2022  
Total exports (USD  million)  92,590.7  80,264.5  75,912.6  88,233.2  93,677.4  89,396.0  85,226.8  121,321.3  121,616.3  
  (% of total)  
Americas  9.2 9.8 9.2 9.2 8.6 8.6 9.8 12.1 10.4 
United  States  7.0 7.7 7.2 7.5 6.8 7.0 8.4 10.7 8.8 
Other America  2.2 2.1 2.0 1.7 1.8 1.6 1.4 1.4 1.6 
Europe  21.8 23.2 24.2 23.6 25.3 25.9 25.6 26.8 27.2 
EU-27 15.5 16.5 18.0 17.8 18.3 19.1 18.9 18.8 21.0 
Germany  4.6 6.2 7.0 6.6 7.1 8.0 7.5 7.7 7.3 
Netherlands  3.3 2.5 2.6 3.2 3.4 3.3 3.9 3.4 4.9 
Belgium  2.7 2.9 3.0 2.8 2.6 3.1 2.8 2.9 3.3 
Italy 1.1 1.4 1.5 1.2 1.0 0.8 0.8 1.0 1.5 
EFTA 1.8 1.7 1.3 1.2 1.2 1.1 1.2 0.8 0.5 
Other Europe  4.5 4.9 4.8 4.6 5.8 5.7 5.5 7.2 5.7 
United  Kingdom  3.8 4.1 4.2 3.9 5.1 5.2 5.0 6.7 5.2 
Commonwealth of Independent States (CIS)a 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.4 0.3 
Africa  29.8 29.4 28.3 26.3 26.6 26.6 23.3 21.3 24.7 
Mozambique  3.2 2.9 3.0 3.2 3.4 4.1 3.6 3.6 4.8 
Botswana  5.1 5.1 4.9 4.3 4.3 4.4 3.8 3.6 3.9 
Namibia  4.9 5.2 4.7 4.0 3.8 4.0 3.1 2.8 2.9 
Zimbabwe  2.5 2.5 2.6 2.4 2.5 2.2 2.6 2.4 2.6 
Zambia  2.9 2.9 2.8 2.5 2.6 2.4 2.0 1.9 2.2 
Eswatini  1.6 1.6 1.5 1.5 1.5 1.5 1.4 1.2 1.3 
Middle East  3.2 3.1 3.3 3.5 3.3 2.9 2.8 2.7 3.0 
United  Arab Emirates  1.6 1.5 1.9 2.1 2.0 1.8 1.8 1.9 2.1 
Asia 27.6 26.9 27.4 29.8 28.9 29.1 28.7 30.1 29.2 
China  9.5 9.2 9.1 9.8 9.1 10.7 11.5 11.2 9.6 
Japan  5.3 5.0 4.6 4.7 4.8 4.8 4.5 6.8 7.0 
Other Asia  12.9 12.6 13.7 15.3 14.9 13.6 12.8 12.2 12.6 
India 4.1 4.0 4.3 4.7 4.8 4.5 3.8 3.4 4.3 
Korea, Republic of  1.4 1.4 1.8 2.2 2.0 1.7 1.6 1.8 2.2 
Other  7.8 7.2 7.1 7.1 6.9 6.4 9.3 6.6 5.2 
Memo:           
EU-28 19.3 20.6 22.2 21.8 23.4 24.4 23.8 25.5 26.2 
SACU  13.1 13.3 12.6 11.4 11.0 11.3 9.6 8.8 9.2 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.   
  WT/TPR/S/447 • South Africa  
 
- 346 - Table  A1.3 Merchandise imports by HS section/chapter/subheading, 2014 -22 
HS section/HS chapters/ subheadings  2014  2015  2016  2017  2018  2019  2020  2021  2022  
Total imports (USD  million)  99,794.6  85,511.0  75,149.1  83,086.9  92,637.0  88,037.5  68,943.2  93,439.6  111,880.3  
 (% of total)  
1-Live animals and products  1.1 1.4 1.5 1.8 1.7 1.6 1.6 1.5 1.2 
2-Vegetable products  1.8 2.2 3.0 2.1 1.9 2.0 2.7 2.0 1.8 
3-Fats and oils  0.8 0.7 0.9 0.9 0.7 0.7 1.0 0.9 1.1 
4-Prepared food, beverages and tobacco  2.7 2.9 3.2 3.3 3.0 3.2 3.4 3.0 2.6 
5-Mineral products  23.7 16.1 13.9 15.2 19.0 17.2 14.3 17.0 23.2 
HS 27 Mineral fuels  23.3 15.7 13.4 14.8 18.5 16.9 14.0 16.6 22.8 
HS 2710 Petroleum oils and oils obtained from 
bituminous minerals, other than crude  5.8 5.5 3.4 5.4 4.9 5.1 5.2 9.0 16.7 
6-Chemicals and products thereof  9.5 10.4 10.4 10.9 10.9 10.7 13.0 12.6 11.3 
HS 30 Pharmaceutical products  2.1 2.5 2.5 2.7 2.7 2.7 3.5 3.3 2.3 
HS 38 Miscellaneous chemical products  1.7 1.8 1.8 1.9 1.8 1.8 2.4 2.1 2.0 
7-Plastics and rubber  3.9 4.1 4.4 4.4 4.4 4.2 4.4 4.6 4.1 
8-Raw hides and skins; leather, furskins and articles 
thereof  0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 
9-Wood, cork, straw  0.4 0.5 0.5 0.5 0.4 0.4 0.4 0.5 0.4 
10-Pulp of wood; paper and paperboard  1.4 1.5 1.6 1.8 2.6 2.9 3.0 3.0 3.1 
11-Textiles and textile articles  3.2 3.7 3.9 3.7 3.6 3.7 4.5 3.7 3.3 
12-Footwear, headgear, etc.  1.1 1.2 1.3 1.2 1.1 1.1 1.1 1.1 1.0 
13-Articles of stone, plaster, cement  1.0 1.2 1.2 1.1 1.2 1.2 1.1 1.1 0.9 
14-Precious stones and metals  1.0 0.7 1.1 1.2 1.3 1.3 1.6 1.6 1.3 
15-Base metals and articles thereof  4.6 5.5 5.4 5.3 4.9 4.9 5.2 6.1 5.3 
16-Machinery, electrical equipment  23.0 25.0 24.5 23.4 21.7 22.4 23.4 21.3 20.5 
HS 84 Machinery and mechanical appliances; parts 
thereof  13.3 13.9 13.7 13.2 12.4 12.7 13.1 12.1 11.2 
HS 85 Electrical machinery and equipment and 
parts thereof  9.7 11.2 10.8 10.2 9.3 9.7 10.3 9.2 9.3 
HS 8517 Telephone sets  3.2 4.0 4.0 3.8 3.7 3.5 3.6 3.3 3.1 
17-Transport equipment  9.5 10.4 9.9 10.0 8.7 9.1 7.2 7.7 8.5 
HS 87 Vehicles  8.2 8.4 7.7 8.4 7.6 7.8 6.4 6.7 7.4 
18-Precision equipment  2.5 2.7 2.9 2.7 2.6 2.7 2.9 2.5 2.2 
HS 90 Optical, photographic, cinematographic, 
measuring, checking, precision, medical or surgical 
instruments  2.3 2.5 2.7 2.6 2.4 2.5 2.8 2.4 2.0 
19-Arms and ammunition  0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.1 0.1 
20-Miscellaneous manufactured articles  1.6 1.8 1.8 1.8 1.7 1.7 1.6 1.5 1.2 
21-Works of art, etc.  0.1 0.0 0.1 0.1 0.1 0.0 0.0 0.1 0.0 
Other  6.5 7.3 8.0 8.2 8.0 8.4 7.4 8.0 6.6 
Source:  WTO Secretariat calculations, based on UN Comtrade database.   
  WT/TPR/S/447 • South Africa  
 
- 347 - Table  A1.4 Merchandise imports by origin, 2014 -22 
  2014  2015  2016  2017  2018  2019  2020  2021  2022  
Total imports (USD  million)  99,794.6  85,511.0  75,149.1  83,086.9  92,637.0  88,037.5  68,943.2  93,439.6  111,880.3  
  (% of total)  
Americas  10.1 11.1 11.6 10.6 9.7 9.9 10.0 10.4 10.5 
United  States  6.6 7.0 6.7 6.6 6.0 6.6 6.4 7.0 7.3 
Other America  3.5 4.0 4.9 4.0 3.7 3.4 3.5 3.4 3.1 
Brazil 1.4 1.6 1.9 1.9 1.6 1.3 1.5 1.4 1.4 
Europe  29.6 31.4 32.9 32.7 30.3 31.6 31.0 28.9 25.9 
EU-27 24.6 26.5 28.2 27.8 25.4 26.3 26.2 24.5 21.8 
Germany  10.0 11.3 11.8 11.5 9.9 9.9 9.1 8.1 7.3 
Italy 2.7 2.6 2.5 2.7 2.8 2.5 2.6 2.8 2.2 
France  2.2 2.3 3.0 2.5 2.2 2.3 2.3 2.1 1.9 
Spain  1.7 1.7 1.8 1.9 1.5 1.8 2.2 1.7 1.5 
Netherlands  1.4 1.5 1.7 1.5 1.2 1.3 1.4 1.7 1.4 
EFTA 0.9 1.0 1.2 1.0 1.1 1.1 1.5 1.3 0.7 
Other Europe  4.1 4.0 3.6 3.8 3.9 4.2 3.3 3.1 3.4 
Türkiye  0.7 0.7 0.6 0.7 0.7 0.7 0.8 1.0 1.7 
United  Kingdom  3.3 3.2 2.9 3.0 3.1 3.3 2.5 2.0 1.6 
Commonwealth of Independent States (CIS)a 0.5 0.6 0.4 0.5 0.6 0.6 0.8 0.7 0.5 
Africa  13.3 10.8 10.7 10.3 12.3 11.7 9.9 9.8 9.0 
Nigeria  5.1 3.5 2.8 2.1 4.1 4.1 3.1 2.4 2.0 
Middle East  10.5 6.5 6.9 7.8 9.7 8.5 7.2 9.4 12.1 
Saudi  Arabia, Kingdom of  7.1 3.1 3.8 4.6 5.8 4.2 3.9 4.4 4.0 
United  Arab Emirates  1.5 1.3 1.4 1.3 1.5 2.4 1.7 2.0 3.7 
Oman  0.5 0.6 0.5 0.7 1.2 1.1 1.0 2.0 2.4 
Asia 35.6 39.3 37.1 37.7 36.8 37.1 39.7 40.0 41.2 
China  15.5 18.3 18.1 18.3 18.4 18.5 20.8 20.6 20.1 
Japan  3.8 3.7 3.4 3.4 3.1 3.2 2.8 2.8 2.5 
Other Asia  16.4 17.3 15.6 15.9 15.2 15.4 16.2 16.7 18.6 
India 4.6 4.9 4.2 4.7 4.1 4.9 5.2 5.7 7.4 
Thailand  2.4 2.4 2.9 3.0 3.1 3.0 3.1 3.2 2.7 
Malaysia  1.0 1.0 1.0 1.0 1.1 1.0 1.1 1.1 1.4 
Other  0.3 0.3 0.3 0.4 0.6 0.6 1.3 0.8 0.8 
Memo:           
EU-28 27.9 29.7 31.0 30.8 28.5 29.7 28.6 26.5 23.5 
SACU  2.7 2.9 3.4 3.8 3.5 3.8 3.6 4.1 3.8 
a Commonwealth of Independent States, including certain associate and former member States.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S/ 447 • South Africa  
 
- 348 - 
 
  Table  A2.1 Selected notifications, 2014 -31 July 2023  
WTO  agreement  Description of 
requirement  Periodicity  Most recent notifications  
Agreement on Agriculture  
Article  18.2 (MA:2)  Volume of imports under 
tariff and other quota 
commitments  Annual since 
1996 G/AG/N/ZAF/110, 14/02/2022  
 
Articles  5.7 and 18.2 
(MA:5)  Annual use of the special 
safeguard provisions  Annual since 
1996 G/AG/N/ZAF/101, 02/03/2021  
 
Article  18.2 (DS:1)  Domestic support  Annual since 
1996 G/AG/N/ZAF/83, 26/02/2015  
 
Articles  10 and 18.2 
(ES:1)  Export subsidies (volumes 
and outlays)  Ad hoc  G/AG/N/ZAF/107, 27/09/2021  
 
Article  16.2 (NF:1)  Decision on possible 
negative effects of the 
reform programme on 
LDC-NFIDC  Annual since 
1996 G/AG/N/ZAF/104, 15/09/2021  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article  7, Annex  B SPS to be notified 
promptly  Once  48 notifications (excluding addenda, 
revisions, and corrigenda) between 
01/01/2014 and 02/05/2023, from 
G/SPS/N/ZAF/34, 04/06/2014 to 
G/SPS/N/ZAF/81, 17/07/2023  
Agreement on the Implementation of Article  VI of the GATT  1994  (Anti -Dumping Agreement)  
Article  16.4 Anti-dumping actions 
taken  Semi-annual  G/ADP/N/377/ZAF, 14/04/2023  
 
Agreement on Rules of Origin  
Paragraph 4 of 
Annex  II Preferential Rules of Origin  Ad hoc  G/RO/N/158, 21/07/2017  
Agreement on Subsidies and Countervailing Measures  
Article  25.11  Countervailing actions 
taken  Semi-annual  G/SCM/N/399/Add.1/Rev.2, 
28/04/2023  
Agreement on Technical Barriers to Trade  
Article  10.6 Information about 
technical regulations, 
standards, and conformity 
assessment  Once 77 notifications (excluding adden da, 
revisions, and corrigenda) between 
01/01/2014 and 02/05/2023, from 
G/TBT/N/ZAF/173, 14/02/2014  
to G/TBT/N/ZAF/250, 21/04/2023  
General Agreement on Trade in Services (GATS)  
Article  III:3 New laws, regulations , or 
administrative guidelines  Ad hoc  S/C/N/727 -730, 25/02/2014  
S/C/N/766, 18/09/2014  
S/C/N/767 -770, 29/09/2014  
S/C/N/788, 14/01/2015  
 Preferential treatment to 
services and service 
suppliers of LDCs Ad hoc  S/C/N/853, 07/12/2015  
Agreement on Customs Valuation  
 Checklist of issues  Ad hoc  G/VAL/N/2/ZAF/1, 22/12/ 2014  
Article  22 Change of laws and 
regulations  Ad hoc  G/VAL/N/1/ZAF/2, 15/01/2015  
Decision  A.4  Ad hoc  G/VAL/N/3/ZAF/1, 22/12/ 2014  
Agreement on Import Licensing  Procedures  
Article  7.3 Import licensing 
procedures  Annually  G/LIC/N/3/ZAF/8, 04/11/2019  
Articles  1.4(a) and/or 
8.2(b)  Changes in administrative 
procedures  Ad hoc  G/LIC/N/1/ZAF/1, 02/12/2016  WT/TPR/S/ 447 • South Africa  
 
- 349 - 
 
  WTO  agreement  Description of 
requirement  Periodicity  Most recent notifications  
Agreement on Trade Facilitation  
Articles  1.4, 10.6.2 
and 12.2.2  Import, export , and transit 
procedures  Ad hoc  G/TFAN/ZAF/2, 10/03/2023  
Articles  15 and 16  Category commitments  Ad hoc  G/TFA/N/ZAF/1/Add.1, 28/02/2018  
G/TFA/N/ZAF/1, 01/12/2017  
GATT  1994  
Article  XVII:4(a) and 
paragraph 1 of the 
interpretation of 
Article  XVII State trading  Annually  G/STR/N/17/ZAF, 11/09/2018  
Source:  Compiled by the WTO Secretariat , based on notification documents . 
  WT/TPR/S/ 447 • South Africa  
 
- 350 - 
 
  Table  A3.1 WTO tariff quotas, 2020  
HS code  Product 
description  Tariff rates 2020  Quota  
commitment  
(Metric 
tonnes)  Fill ratio (%)  
2020  In-quota (%)  Out-of-quota (% or 
cents)  
0201 and  
0202 Meat of bovine 
animals  13.8; 32  40% or 240  c/kg 26,254  2.1 
0203 Meat of swine  7.4 0%; 15% or 130 c/kg 4,691   
0204 Meat of sheep  13.2; 16.6; 19  40% or 200 c/kg  6,002  19.1 
0206 Edible offal  7.6 0%; 22% or 240  c/kg; 
30% or 130  c/kg 2,544   
0207 Meat and edible 
offal of poultry  7.4; 16.4; 9  0% 29,033   
0401 Milk and cream, 
fresh 19.2 0% 53,657   
0402 Milk powder  19.2 450 c/kg (max. 96%)  4,470  0.0 
0403 Buttermilk and 
yoghurt  19.2 0%; 450  c/kg (max. 
96%)  213 0.0 
0404 Whey  19.2 450 c/kg (max. 96%)  2,786  0.0 
0405 Butter  15.8 500 c/kg (max. 37%); 
500 c/kg (max. 79%)  1,167  0.0 
0406 Cheese  19 500 c/kg (max. 95%)  1,989  0.0 
0407 and  
0408 Eggs 3.8 0%; 19%  9,000  0.0 
0701 Potatoes  9.8 0.44 c/kg 48,161   
070520  Chicory, fresh  0.6 0% 4  
0708 Peas and beans, 
fresh 4.8; 6.6  0%; 15%  263 0.0 
0710 Vegetables, 
frozen  4.8; 6.6; 7.4; 9.8  0%; 10%; 20%; 24%; 
30% 583 77.7 
0712 Dried vegetables  7.4; 9.8  20%; 4  c/kg 860 100.0  
071320 
and 
071390  Dried peas  4.8; 6.6  0%; 15%; 24%  5,184  0.0 
071330  Dried beans  4.8 10%; 15%  11,063  80.8 
071340  Lentils  9.8 0% 1,601   
080620  Grapes, dried  4.6 10% 397 0.0 
0813 Dried fruit  6; 6.6; 8.8; 10.8; 
14 10% 349 6.3 
0901 Coffee  23.8 0%; 20%; 6  c/kg; 
10 c/kg 15,746   
0902 Tea 34 0%; 400  c/kg 11,375   
1001 ex 
1100 Wheat or wheat 
equivalent  4.2; 14.4; 19.8  0%; 51,66c/kg  108,279  78.7 
1002 Rye 4.2 0% 83  
1003 Barley  8.2 0% 14,552   
ex 1100  Barley equivalent  8.2 0% 96,248   
1004 ex 
1100 Oats or oat 
equivalent  6.6; 19.8  0% 7,333   
1005 ex 
1100 Maize or maize 
equivalent  8.6; 10; 19.8  0%; 5%  269,000  0.0 
1007 Grain sorghum  6.6 3% 21,116  0.0 
1008 Other cereals  8.6 0%; 5%  145 0.0 
1201 Soya beans  8 8% 1,717   
1202 Groundnuts  14 10% 7,908   
1204 Linseed  9.4 10% 202  
1205 Oilseed rape 8.0 0%; 10%  871 0.0 
1206 Sunflower seed  9.4 9.4%  14,514   
120921  Lucerne seed  5.0 0% 576  WT/TPR/S/ 447 • South Africa  
 
- 351 - 
 
  HS code  Product 
description  Tariff rates 2020  Quota  
commitment  
(Metric 
tonnes)  Fill ratio (%)  
2020  In-quota (%)  Out-of-quota (% or 
cents)  
1507, 
1508,  
1510-1515 Vegetable oils  9.8; 12.2; 13.4; 
16.2 0%; 9.8%; 10%  61,083   
1701 Sugar  21 527,75c/kg  62,037   
1702 Other sugars  13.6 0% 6,391   
1703 Molasses  13.6 0% 34,533   
1901 Malt extracts  7.4; 19.2; 19.8  20%; 10% or 55  c/kg 
less 90%  6,119  0.0 
1902 Pasta  10.8 20%; 30%; 3  c/kg; 
40%; 5.5 c/kg 1,749  74.1 
1903 Tapioca  8.6 0% 5,448   
2008 Preserved fruit 
and nuts  6.6; 7.4; 8.6; 12; 
14 0%; 5%; 20%; 55%; 
0.99 c/kg 1,636   
2106 Food preparations  7.4 0%; 5%; 10%; 20%; 
154 c/L 3,109  58.1 
2204-2208 Wine and spirits  13.4; 14.6; 19.6; 
24.2; 119.4  25%; 136  c/L; 154  c/L; 
317 c/L of absolute 
alcohol  9,572,405  0.1 
2209 Vinegar  14.6 5 c/L 15,000   
2303 Corn gluten feed  8.6 0% 3,960   
2304-2306 Oil-cake 6.6 6.6%  120,667   
2401 Tobacco  8.8 77 c/kg; 15% or 
860 c/kg less 85%; 
860 c/kg less 85% 
(max. 44%)  16,773  0.2 
5201 Cotton  12 0%; 15%; 160  c/kg 17,101  0.0 
Source:  Information provided by the authorities.  
  WT/TPR/S/ 447 • South Africa  
 
- 352 - 
 
  Table  A3.2 Selected i ncentive schemes administered by the DTIC, 2023  
Schemes and 
objectives  Eligibility  Incentive  
Innovation incentives  
Technology and 
Human Resources for 
Industry Programme 
(THRIP ) − 50% paid by the Government for large 
companies or registered industry 
associations;  
− 75% for SMMEs; and  
− 80% or 90% for SMMEs with different 
levels of B -BBEE.  Cash incentive: cost -sharing grant for up 
to ZAR  8 million per annum, for a 
maximum of 3 years for approved 
projects in applied R&D in science, 
engineering, and technology.  
Support Programme 
for Industrial 
Innovation (SPII)  
 B-BBEE ownership:  
− 0-25%: 50% qualifying costs incurred;  
− 25.1% -50%, or >50% ownership by 
women or people with disabilities: 75% 
or 65% of qualifying costs incurred; 
and 
− >50%: 85% or 75% of qualifying costs 
incurred.  Cash incentive:  
− Product process development 
scheme:  
Maximum ZAR  2 million cash grant.  
Small, very small, micro enterprises, 
individuals.  
 
− Matching scheme:  
Maximum ZAR  8 million cash grant.  
All enterprises and individuals.  
Export promotion incentives  
Export Marketing and 
Investment 
Assistance (EMIA)  At least 35% local content or value addition 
(including raw material and packaging).  Cash incentive:  
Cost-reimbursable grants for individual 
exporters to grow export markets.  
Sector Specific 
Assistance Scheme 
(SSAS)  Eligible coordinators:  
Export councils, industry associations, 
provincial investment and economic 
development agencies, business chambers, 
Small Enterprise Development Agency 
(SEDA), local municipalities, metropolitan 
councils, etc.  Cash incentive:  
Cost-sharing grants to registered sector 
coordinators, covering their export 
development and promotional costs, 
export product and service development 
costs, and costs to enhance their export 
capacities.  
Maximum funding: ZAR  1.9 million.  
Capital Projects 
Feasibility 
Programme (CPFP)  A minimum local content: 50% for goods 
and 70% for professional services, of which 
10% should be sub -contracted to 
South  African black professionals or 
black-owned firms.  
 
Minimum project investment: 
ZAR 15 million.  
 
B-BBEE compliant.  Cash incentive:  
− Feasibility studies costs for capital 
projects: 50% for projects outside 
Africa, 55% for projects in Africa 
(excluding South  Africa);  
− Feasibility studies costs for 
manufacturing projects in 
South  Africa: 50% for projects wi th 
total assets above ZAR  30 million, 
70% for projects below 
ZAR 30 million.  
Capped at ZAR  8 million.  
Infrastructure investment incentives  
Special Economic 
Zone (SEZ) 
Programme   Tax incentive  
Details described in Section  3.2.4 of the 
report.  
Critical Infrastructure 
Programme (CIP)  Supporting "critical" infrastructure: i.e.  if the 
investment would not take place without the 
said infrastructure, or the investment would 
not operate optimally.  
B-BBEE compliant.  
Projects that have applied for the Shared 
Economic Infrastructure Facility (SEIF) are 
not eligible for CIP incentives.  Cash incentives:  
− A cash grant of 10% -30% of the 
total qualifying infrastructure 
development costs;  
− For agro -processing and 
state-owned aerospace, and 
defence national strategic testing 
facilities: 10% -50%;  
− For projects that alleviate water 
and/or electricity dependence: 
10%-50%;  
− For distressed municipalities and 
state-owned industrial parks: up to 
100%;  
− For all,  maximum ZAR  50 million.  
Source:  DTIC (2022), A Guide to the DTIC Incentive Schemes 2021/22 . Viewed  at: 
http://www.thedtic.gov.za/wp -content/uploads/the -dti-incentive -schemes -guide.pdf ; and  
KPMG  (2020), Incentivise Your Investment Strategy – A Guide to South  African Government and Tax 
Incentives . Viewed  at: 
https://assets.kpmg.com/content/dam/kpmg/za/pdf/2021/tax -and-govern ment-incentive -guide -202
0.pdf. 
__________